Orioles Pantry is a chain of arts and crafts stores. Results for the most recent year are as follows:

Sales revenue				$11,430,000
Variable expenses		$6,350,000
Fixed expenses		2,540,000
Total expenses				8,890,000
Operating income				$2,540,000

(a)

What is Orioles Pantrys degree of operating leverage?

Degree of operating leverage