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If before-tax profit is $35,000 and operating leverage is 1.50 at the end of the most recent period, a 20% increase in sale will increase
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If before-tax profit is $35,000 and operating leverage is 1.50 at the end of the most recent period, a 20% increase in sale will increase net income by what percent and what dollar amount?
A. 20% or $7,000
B. 30% or $10,500
C. 15% or $5,250
D. 40% or $14,000
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