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Calculate the new degree of operating leverage

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Reference no: EM132071248

Question - Iverson Corporation's variable expenses are 60% of sales. At a $400,000 sales level, the degree of operating leverage is 5. If sales increase by $40,000, the new degree of operating leverage will be (rounded):

2.86

5.25

5.00

3.67

Reference no: EM132071248

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