What is the degree of operating leverage for the company

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Suppose that a company had a target of $4.000.000 of sales revenues and $1.000.000 of profits. However, due to macroeceonomic reasons, the company had only achieved half of the sales target and generated $200.000 of profits only.

Problem 1: What is the degree of operating leverage for the company at the target profit level?

Reference no: EM132715667

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