Degree of Operating Leverage Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 3,500 units sold is $58,500. Required: Calculate the degree of operating leverage. Note: Round answer to one decimal place. 5.3 X Feedback Check My Work The degree of operating leverage isolates how well a company is using their fixed costs to generate a profit. The more profit using that same fixed costs, the higher the degree of operating leverage. Total Contribution Margin Degree of Operating Leverage Operating Income Review the "How to Calculate the Degree of Operating Leverage" example in your text