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2. Refer to the income statements in Requirement (1) above. For both present operations and the proposed new operations, Compute a. The degree of

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2. Refer to the income statements in Requirement (1) above. For both present operations and the proposed new operations, Compute a. The degree of operating leverage. Degree of operating leverage b. The break-even point in dollars. Dollar sales to breakeven Present Proposed Present Proposed c. The margin of safety in both dollar and percentage terms. Margin of safety in dollars Margin of safety in percentage Present % Proposed % 4 3. Refer again to the data in Requirement (1) above. As a manager, what factor would be paramount in your mind in deciding whether to purchase the new enuinment? (Assume that ample funds are available to make the nurchase)

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