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ABC Company has the following Income Statement for the year 2021. Sales Revenue 130000 Variable Expenses 91000 Contribution Margin 39000 Fixed Expenses 20000 Net Operating

ABC Company has the following Income Statement for the year 2021. Sales Revenue 130000 Variable Expenses 91000 Contribution Margin 39000 Fixed Expenses 20000 Net Operating Income 19000

Required: 1. What is the Operating Leverage for the company at the current sales level 2. If the Sales were to increase by 30% what will be the new Net Operating Income

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