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Magnificent Manes Hair Salons Is Forecasting a 17% Increase in Sales

Question 12

Multiple Choice

Magnificent Manes Hair Salons is forecasting a 17% increase in sales. What would be its degree of operating leverage if it anticipates that its EBIT will go from $150,000 to $175,000 during the same time frame?


A) 1.76
B) 2.5
C) .98
D) 1.11

Correct Answer:

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