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What is gums degree of operating leverage

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Reference no: EM132544039

Consider the Gum company. Gum sells packs of gum for $.50 each. It cost $.20 per pack to manufacture and distribute the gum. Gum has fixed operating costs of $5000 and fixed financing costs of $3000.

Question 1: What is Gums degree of:

  1. Operating leverage
  2. Financial leverage
  3. Total leverage

At 50,000 packs produced and sold?

Reference no: EM132544039

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