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ABC Company reported the following information for May: contribution margin ratio ......... 56% fixed costs ....................... $126,000 margin of safety .................. $375,000 variable cost per

ABC Company reported the following information for May:

contribution margin ratio ......... 56%

fixed costs ....................... $126,000

margin of safety .................. $375,000

variable cost per unit ............ $22

Calculate ABC Company's degree of operating leverage for May.

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