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How much is the company fixed costs

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Q1. If sales increase from P800,000 to P900,000, and if the degree of operating leverage is 5, one could expect profit to increase by how many percent?

Q2. A company has an operating leverage factor of 4. When its sales increased to P500,000, its profit before tax increased by 100%.Its variable cost ratio is 40%. How much is the company's fixed costs?

Reference no: EM132532181

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