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ABC wants to determine the degree of operating leverage at sales levels of 6,000 and 8,000 units. As we did earlier, we will assume that:

ABC wants to determine the degree of operating leverage at sales levels of 6,000 and 8,000 units. As we did earlier, we will assume that:

Fixed costs are $200,000

Baskets are sold for $63.50 each

Variable costs are $38.45 per basket

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