Klein Company reports the following data:?
Sales$980,000
Variable costs500,000
Fixed costs350,000?
Determine Klein Company's operating leverage. Round answer to the nearest cent.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs to variable costs.

Variable Costs

Costs that change directly in proportion to changes in the volume of production or activity level, such as raw materials, labor costs directly tied to production, and utility costs for manufacturing facilities.

Fixed Costs

Expenses that do not change in total despite changes in the volume of goods or services produced or sold.