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What pharoah degree of operating leverage is

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Problem 1: Waterway Company has sales of $493000, variable costs of $421000, and fixed costs of $29000. Pharoah Company has sales of $493000, variable costs of $194000, and fixed costs of $249000. Pharoah's degree of operating leverage is

Option 1: 0.54
Option 2: 1.67
Option 3: 5.98
Option 4: 6.44

Reference no: EM132790759

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