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Compute degree of leverage and the expected operating income

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Reference no: EM13509096

Star Products sells pillows for $90 per unit. The variable expenses are $63 per pillow and the fixed costs are $135,000 per month. The company sells 8,000 pillows per month.

Required: Compute the degree of leverage and the expected operating income if sales increase 10%.

 

Reference no: EM13509096

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