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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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