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aldovar company produces a variety of chemicals. One division makes reagents for laboratories. The divisions projected income statement for the coming year is: Sales (203,000
aldovar company produces a variety of chemicals. One division makes reagents for laboratories. The divisions projected income statement for the coming year is:
Sales (203,000 units @ $70) $14,210,000
total variable cost 8,120,000
Contribution margin $6,090,000
Total fixed cost 4,495,000
Operating income $1,144,500
Compute the degree of operating leverage based on the orginal income statement. If sales revenue are 8% greater than expected, what is the percentage increase in operating income? (Note: round operating leverage to two decimal places.
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