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Miller Manufacturing's Degree of Operating Leverage Is 1

Question 56

Multiple Choice

Miller Manufacturing's degree of operating leverage is 1.5.Warren Corporation's degree of operating leverage is 6.Warren's earnings would go up (or down) by ________ as much as Miller's with an equal increase (or decrease) in sales.


A) 1/4
B) 4.5 times
C) 4 times
D) 7.5 times

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