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What the new degree of operating leverage will be

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Reference no: EM132546646

Question 1: Vince Corporation's variable expenses are 60% of sales. At a $200,000 sales level, the degree of operating leverage is 5. If sales increased by $20,000, the new degree of operating leverage will be (rounded):

Option a) 2.86

Option b) 3.67

Option c) 1.83

Option d) 4.20

Reference no: EM132546646

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