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ABC Corp. invests in a project with the following annual information: Fixed costs of $4,960, a depreciation of $1,940 and sales revenue of $24,900. Variable

ABC Corp. invests in a project with the following annual information: Fixed costs of $4,960, a depreciation of $1,940 and sales revenue of $24,900. Variable costs are 49.90% of sales revenue. What is ABC's degree of operating leverage?

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