Sales

$$516,000$

Variable expenses

$286,500$

Contribution margin

$229,500$

Fixed expenses

$201,700$

Net operating income

$$27,800$

Required:

Compute the degree of operating leverage to two decimal places.

Group of answer choices

$6\mathrm{.}85$

$8\mathrm{.}26$

$7\mathrm{.}88$

$3\mathrm{.}90$