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Hamilton Company has sales of 2,000 units at $30 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $20,000,

Hamilton Company has sales of 2,000 units at $30 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $20,000, the degree of operating leverage is:

a) 2.25

b) 3.16

c) 2.50

d) 5.00

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