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What is the degree of operating leverage at volume level

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Reference no: EM132541708

Question 1: May Clothing is a retail men's clothing store. May's variable cost is $70.00 per shirt and the sales price is $106.00 per shirt. May plans to sell 150,000 shirts for the year and, at this level, would generate a before-tax profit of $3,000,000. What is the degree of operating leverage (DOL) at this volume level? (Round your answer to 1 decimal place.)

Reference no: EM132541708

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