Multiple Choice
Given the following information, what is the degree of operating leverage? Price = $40 per unit; variable cost = $20 per unit; fixed costs = $95,000 per year; depreciation = $35,000 per year; sales
= 10,000 units per year. Ignore tax effects.
A) 0.9
B) 1.3
C) 1.5
D) 1.9
E) 2.4
Correct Answer:
Verified
Correct Answer:
Verified
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