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What Is the Degree of Operating Leverage? Sales = 100,000

Question 206

Multiple Choice

What is the degree of operating leverage? Sales = 100,000 units; price = $50; variable cost = $30; fixed costs = $950,000; depreciation = $250,000; tax rate = 34%.


A) 1.06
B) 1.22
C) 1.37
D) 1.63
E) 2.22

Correct Answer:

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