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2. Beyond Grass installs artificial turf in homes or sporting fields. The company's most recent monthly contribution format income statement is as follows: Sales Variable
2. Beyond Grass installs artificial turf in homes or sporting fields. The company's most recent monthly contribution format income statement is as follows: Sales Variable Costs Contribution Margin Fixed Costs Net Operating Income Amount $80,000 $32,000 $48,000 $38,000 $10,000 % Sales 100 40 60 Required: a) Compute the company's degree of operating leverage. b) By what % would net operating income increase if sales increased by 5%
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