What is your firm approximate operating leverage

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Reference no: EM131350726

You currently sell 1,000 units at a sales price of $100 per unit (sales price remains the same, regardless of the economy). Also, regardless of the economy, your variable cost per unit will be $60 and your total fixed costs will be $25,000. In a good economy, you expect sales to increase by 1% (i.e. you will be selling 1,010 units). What is your firm's approximate Operating Leverage? a. 1.14 b. 2.67 c. 2.97 d. 3.15

Reference no: EM131350726

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