General Motors has the following cost structure for producing vehicles: Cost Component Fixed Cost ($) Variable Cost
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Question:
General Motors has the following cost structure for producing vehicles:
Cost Component | Fixed Cost ($) | Variable Cost per Unit ($) |
Manufacturing | $3,000,000 | $25,000 |
Marketing | $1,500,000 | $12,000 |
Distribution | $800,000 | $8,000 |
Calculate the degree of operating leverage (DOL) for General Motors.
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