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Old Canadian Company Has Sales of $500,000, Variable Costs of $425,000

Question 54

Multiple Choice

Old Canadian Company has sales of $500,000, variable costs of $425,000, and fixed costs of $25,000.New World Company has sales of $500,000, variable costs of $200,000, and fixed costs of $250,000.New World's degree of operating leverage is


A) .85.
B) 1.50.
C) 6.00.
D) 6.67.

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