1. Cartersville Co. reports the following data:

Sales	$561,500
Variable costs	(308,800)
Contribution margin	$252,700
Fixed costs	(191,100)
Operating income	$61,600

Determine Cartersville Co.s operating leverage. Round your answer to one decimal place.

2. The Ira Company has sales of $680,000, and the break-even point in sales dollars is $496,400.

Determine the Ira company's margin of safety as a percent of current sales. %