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Consider the following summary modified income statement for Tech Inc.: Sales $553,000 Variable Operating Costs 240,000 Contribution Margin $313,000 Fixed Operating Costs 133,000 Operating Income
Consider the following summary modified income statement for Tech Inc.:
Sales $553,000
Variable Operating Costs 240,000
Contribution Margin $313,000
Fixed Operating Costs 133,000
Operating Income $180,000
Interest Expense 41,000
Net Income $139,000
Calculate Tech's degree of operating leverage.
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