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    Financial and Managerial Accounting Study Set 1
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    Exam 18: Cost Behavior and Cost-Volume-Profit Analysis
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    Morse Company Reports Total Contribution Margin of $48,000 and Pretax
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Morse Company Reports Total Contribution Margin of $48,000 and Pretax

Question 112

Question 112

Multiple Choice

Morse Company reports total contribution margin of $48,000 and pretax net income of $12,000 for the current month.The degree of operating leverage is:


A) 4.0
B) 0.25
C) 1.25
D) 2.5
E) 250%

Correct Answer:

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