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Bulldog Inc. has fixed operating costs of $400,000, variable operating costs of $20 per unit, and a selling price of $70 per unit. The interest
Bulldog Inc. has fixed operating costs of $400,000, variable operating costs of $20 per unit, and a selling price of $70 per unit. The interest expense is $100,000 per year. Bulldog has a 21% tax rate. Calculate the firms degree of operating leverage when it increases sales from 12,000 units to 13,000.
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