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26. The operations of ABC Company for last year are as follows: (8 pts) Sales Variable costs $800,000 400,000 Contribution margin40,000 Fixed costs 300,000 Operating
26. The operations of ABC Company for last year are as follows: (8 pts) Sales Variable costs $800,000 400,000 Contribution margin40,000 Fixed costs 300,000 Operating income$100,000 a. Calculate the degree of operating leverage. Using the degree of operating leverage a. Calculate thedegee o leverage. b. by what % should income increase with an expected 10% increase in sales? c. Assuming the sales mix does not change, what is the breakeven point in sales dollars? d. What is the margin of safety
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