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4. Allison Radios manufactures radio and communication equipment. The selling price of its finished product is $80 per unit. The variable cost per unit is

4. Allison Radios manufactures radio and communication equipment. The selling price of its finished product is $80 per unit. The variable cost per unit is $56. Allisons fixed costs are $240,000 per year. At sales of 15,000 units, what is the degree of operating leverage?

a. 1.6

b. 2.4

c. 3.0

d. 3.2

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