Required information The following information applies to the questions displayed below. Oso Company prepared the following contribution format income statement based on sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units).
Part 14 of 15
Sales: $60,000
Variable expenses: $39,000
Contribution margin: $21,000
Fixed expenses: $14,700
Net operating income: $6,300
14. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $14,700 and the total fixed expenses are $39,000. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct.
Degree of operating leverage: 1.33