Magnitude of operating leverage for donuts unlimited

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Reference no: EM13258315

At a sales level of $270,000, the magnitude of operating leverage for Donuts Unlimited is 1.5. If sales increase by 20%, profits (net income) will increase by:

a. 20%

b. 1.5%

c. 15%

d. 30%

Reference no: EM13258315

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