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$5$

$2$ Refer to the income statements in Requirement $(1)$ above. For both present operations and the proposed new operations, Compute:

a$.$ The degree of operating leverage.

$01$:$19$:$04$

$\backslash$table$[[$Degree of operating leverage,Present,Proposed$]]$

eBook

b$.$ The break$-$even point in dollars.

$\backslash$table$[[,$Present,Proposed$],[$Dollar sales to breakeven,,$]]$

c$.$ The margin of safety in both dollar and percentage terms.

$\backslash$table$[[$Present$,$Proposed,,$],[$Margin of safety in dollars,,,$],[$Margin of safety in percentage,,$\%,]]$

Mc

Prey.

$5$ of $5$

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