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If a company has a degree of operating leverage of 5, a 10% increase in sales volume will result in a A : 50% increase

If a company has a degree of operating leverage of 5, a 10% increase in sales volume will result in a

  • A : 50% increase in fixed costs.

  • B : 10% increase in operating income.

  • C : 10% decrease in contribution margin.

  • D : 50% increase in operating income.

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