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Approximate degree of operating leverage

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Problem: Assume Wrigley Chewing Gum Company sells cartons of gum at $10.00 each. Variable costs of production and packaging are $6.00, and company fixed costs are $57,000,000. The company's current sales level is 20,000,000 cartons.

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Question: What is Wrigley Chewing Gum Company's approximate degree of operating leverage?

Reference no: EM132438307

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