Nutley Manufacturing had a $1\mathrm{.}20$ operating leverage factor when sales were $$50,000.$ The company's contribution margin ratio was $30\%.$ What were the company's fixed expenses?

Begin by identifying the formula to compute the operating income with the available data.

Contribution margin

Operating leverage factor

Operating income

Now identify the formula to compute the fixed expenses with the available data.

Contribution margin $,$ Operating income $,$ Fixed expenses

Fixed expenses were