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IBM has the following cost structure for providing IT services: Cost Component Fixed Cost ($) Variable Cost per Unit ($) Service Delivery $1,200,000 $20 Sales

IBM has the following cost structure for providing IT services:

Cost Component

Fixed Cost ($)

Variable Cost per Unit ($)

Service Delivery

$1,200,000

$20

Sales and Marketing

$800,000

$10

Customer Support

$500,000

$5

Calculate the degree of operating leverage (DOL) for IBM.

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