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Jamesly Company's variable expenses are 60% of sales. At a 300,000 sales level, the degree of operating leverage is 10. The total fixed costs are

Jamesly Company's variable expenses are 60% of sales. At a 300,000 sales level, the degree of operating leverage is 10. The total fixed costs are 108,000. If sales increase by 30,000, the new degree of operating leverage will be:

a.

5.5

b.

10

c.

4.5

d.

11

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