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2. SQUIBB, a pharmaceutical company has provided the following information for your analysis: Sales: $43 million Variable costs: $27.95 million Expected increase in sales in

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2. SQUIBB, a pharmaceutical company has provided the following information for your analysis: Sales: $43 million Variable costs: $27.95 million Expected increase in sales in the coming year: 15% Fixed operating costs (constant): $9.1 million What is the degree of operating leverage for SQUIBB? (20 points)

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