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8. everaged m Use the following information for questions 8 and 9. LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 120,000

8. everaged m Use the following information for questions 8 and 9. LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 120,000 48,000 Contribution Margin 60,000 72,000 Fixed Costs 30,000 30000 Operating Income 30,000 42,000 What is LSB's Degree of operating leverage (DOL)? 3.33 2.00 C. 0.50 d. 1.00 If LSB's sales increase by $20,000, what will be the company's operating profit? 9. a d. b. $42,000 $12,000 $50,000 $30,000 100,000120% 40,000 X120 120,000 - 48,000

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