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The Degree of Operating Leverage for Geesling Company Is 8

Question 119

Multiple Choice

The degree of operating leverage for Geesling Company is 8.0 at 80,000 units of sales.At 80,000 units of sales,the net profit is $10,000.If the sales volume increases to 90,000 units,what is the net profit?


A) $12,000
B) $20,000
C) $22,222
D) $80,000

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