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Problem-
At a sales level of $83,000, Blue Company's contribution margin is $31,000. If the degree of operating leverage is 4 at a $83,000 sales level, net operating income must equal:
a. $13,000
b. $7,750
c. $20,750
d. $23,250
Additional Requirement-
The problem belongs to Basic Accounting and it discuss about calculation of net operating income.
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