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What is electronic arts operating leverage

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Electronic Arts (EA) produces hockey posters for sale. They have fixed expenses of $284,000 per month plus variable costs of $2.40 per hockey poster. Electronic Arts sells each poster for $9.50. EA has a target monthly income of $216,000. What is Electronic Arts' operating leverage if it achieves its operating income goal?

 

 

Reference no: EM133651169

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