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The Smith Bakery sells a variety of gourmet breads, cakes, and pastries. Althouth they are more expensive than those available in the supermarkets, they have
The Smith Bakery sells a variety of gourmet breads, cakes, and pastries. Althouth they are more expensive than those available in the supermarkets, they have a loyal customer base that is willing to pay a premium price. On the average, Smith Bakery has a monthly revenue of $250,000 and earns a profit of $20,000. Their contribution margin ratio is 45%. What is the operating leverage for Smith Bakery? Round off your answer to four digits. A. 0.5978 B
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