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Brown sells tiling grout and reports the following data: Kilograms produced and sold 625,000 kg Sales revenue $5,625,000 Variable manufacturing expense 1,875,000 Fixed manufacturing expense

Brown sells tiling grout and reports the following data:

Kilograms produced and sold

625,000 kg

Sales revenue

$5,625,000

Variable manufacturing expense

1,875,000

Fixed manufacturing expense

1,000,500

Variable selling and administrative expense

625,000

Fixed selling and administrative expense

562,000

Net operating income

$ 1,562,500

Calculate the companys operating leverage if sales decrease by 10%.

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