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Determine the degree of operating leverage

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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $81.76. The variable cost per unit is $22.80, Poseidon Swim has average fixed costs per year of $8,222.

Determine the degree of operating leverage for the level of production and sales 498 swim trunks.

Round the answer to two decimal places.

Reference no: EM132503842

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