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Pratt Corporation
Information Relating to the Current Operations of Pratt

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Pratt Corporation
Information relating to the current operations of Pratt Corporation follows:
 Sales $120,000 Variable costs (36,000‾) Contribution margin $84,000 Fixed costs ($70,000‾) Profit before taxes $14,000\begin{array}{ll}\text { Sales } & \$ 120,000 \\\text { Variable costs } & (\underline{36,000}) \\\text { Contribution margin } & \$ 84,000 \\\text { Fixed costs } & (\underline{\$ 70,000}) \\\text { Profit before taxes } & \$ 14,000\end{array} Refer to Pratt Corporation.Compute Pratt's degree of operating leverage.

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