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A firm has Sales of $500, variable costs of $300, fixed costs of $100 and interest expense of $50. Its degree of operating leverage is

A firm has Sales of $500, variable costs of $300, fixed costs of $100 and interest expense of $50. Its degree of operating leverage is A. 3.33 B. 2.00 C. 1.67 D. cannot tell without knowing the tax rate.

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