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Hanks manufacturing sells motors for $250 each. Its total fixed costs are 32 million and its variable costs are $150 per unit. The corporate tax
Hanks manufacturing sells motors for $250 each. Its total fixed costs are 32 million and its variable costs are $150 per unit. The corporate tax rate is 28%. Currently, it sells 2 million motors in a year but next year it expects to sell 3 million motors. What would be its operating leverage.
1.2
4.02
2.0
3
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