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What is the degree of operating leverage for acme

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Reference no: EM133130954

Question - Acme Co manufactures bars of soap with pumice. Data on its sales and costs are as follows:

Pumice

Sales volume in units 150,000

Units Sales Price $2.50

Unit Variable Cost $1.00

# Machine hours to produce 100 units 1

Total Fixed Operating Costs $150,000

What is the degree of operating leverage for Acme?

Reference no: EM133130954

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