Pattavina Company installs deck railings. The company’s most recent monthly contribution format income statement appears below:
Sales: $600,000 "% of Sales": 100%
Variable Expenses: $240,000 "% of sales": 40%
Contribution Margin: $360,000 "% of Sales": 60%
Fixed Expenses $270,000
Net Operating Income $90,000
Compute the company’s degree of Operating Leverage.