Calculate the degree of operating leverage

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Reference no: EM13849029

Calculate the degree of operating given: sales of 25,000; variable costs of 13,000, operating income of 7,000 for year one, and sales of 40,000, variable costs of 15,000 and operating income of 16,000 for year 2. (Specifically, calculate difference between the sales and the operating income for each of the given years. This will allow you to calculate the degree of operating leverage). Your answer should be rounded to two decimal places

Reference no: EM13849029

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