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Question 38

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Use the following information to answer questions
Wild Bear Corp. sells tents for $250. The company produced and sold 5,000 tents in 2010 and incurred the following costs:
Variable production cost per tent $125
Fixed production cost $195,000
Variable selling expense per tent $25
Fixed selling and administrative cost $135,000
The company had expected to sell 3,900 units in 2010. Wild Boar's tax rate is 30%.
-Wild Boar's degree of operating leverage for 2010 was


A) 0.24.
B) 0.34.
C) 2.50.
D) 2.94.
E) 4.20.

Correct Answer:

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