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Question - Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:
Per Unit Percent
Sales price $400 100.00
Variable costs 207 51.75
Unit contribution margin $193 48.25
Assume that Staley Co. is currently selling 530 computer monitors per month and monthly fixed costs are $79,100.
What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 530 units)?
What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)
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