Answer:
The correct answer is 3.
Explanation:
According to the scenario, the computation of the given data are as follows:
Variable cost = Cost of goods sold (variable) + Supplies
= $50,000 + $10,000 = $60,000
Fixed cost = Cost of goods sold (fixed) + Administrative salaries + Depreciation
= $8,000 + $42,000 +$10,000 = $60,000
So, we can calculate the operating leverage by using following formula:
Operating leverage = Contribution margin ÷ Net operating income
Where, Contribution Margin = Sales revenue - Variable cost
= $150,000 - $60,000 = $90,000
And Net operating income = Contribution Margin - Fixed Cost
= $90,000 - $60,000 = $30,000
By putting the value, we get
Operating leverage = $90,000 ÷ $30,000
= 3
