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4. Assume that the operating results for last year were as follows: Sales Variable expenses $1,000,000 424,000 Contribution margin Fixed expenses 576,000 480,000 Operating income

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4. Assume that the operating results for last year were as follows: Sales Variable expenses $1,000,000 424,000 Contribution margin Fixed expenses 576,000 480,000 Operating income 96,000 a. Compute the degree of operating leverage at the current level of sales. Degree of operating leverage b. The president expects sales to increase by 14% next year. How much should operating income increase to? Operating income increases by

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