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DOL=SVC/SVCF (Sales minus Variable Costs divided by Sales Variable Cost Fixed Cost of Debt = Gross Profit/EBIT The XYZ Company has sales of $200,000, variable

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DOL=SVC/SVCF (Sales minus Variable Costs divided by Sales Variable Cost Fixed Cost of Debt = Gross Profit/EBIT The XYZ Company has sales of $200,000, variable costs of $120,000 and fixed costs of debt of $48,000. What is the degree of operating leverage for this firm? If sales rise to $330,000 what is the change in operating income (EBIT)

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