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A company achieved a target operating income of $30,000 last year. Variable expenses are 65% of sales, and fixed expenses are $7,500. The company's
A company achieved a target operating income of $30,000 last year. Variable expenses are 65% of sales, and fixed expenses are $7,500. The company's sales volume declined by 12% this year. Assuming that there is no change in total fixed expenses, compute the Degree of operating leverage this year. (Round to the two nearest decimal places) ANS:
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
16th edition
1118742974, 978-1118743201, 1118743202, 978-1118742976
