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Assume Forsythe, Inc. had sales last year of 12 million and a profit of 2 million dollars. This year, we had sales of 15 million
Assume Forsythe, Inc. had sales last year of 12 million and a profit of 2 million dollars. This year, we had sales of 15 million and made a profit of 3.5 million dollars. Compute the degree of operating leverage of my company. Additionally compute by how much sales would need to decline next year to wipe out 100% of my profits, assuming I don't change the capital structure.
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