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Larimore Company sales are $610,000. The company has variable costs equal to 50% of sales and total fixed costs of $155,000. Required: What is the
Larimore Company sales are $610,000. The company has variable costs equal to 50% of sales and total fixed costs of $155,000. Required: What is the company's break-even point in sales dollars? Compute the company's operating leverage at its current sales level. Note: Round answer to 2 decimal places. Compute the percentage change in income that will accompany a 10% increase in sales. Note: Round answer to 1 decimal place. Compute the company's net income and operating leverage if sales increase by 10%. Note: Round operating leverage to 2 decimal places. Describe the effect on operating leverage as a company's sales increase and it moves further beyond its break-even point
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