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Margin of Safety and Operating Leverage Gonzales Company produces a single product. The projected income statement for the coming year is as follows: Required: 1.

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Margin of Safety and Operating Leverage Gonzales Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the break-even sales dollars. $ 2. Compute the margin of safety in sales dollars. $ 3. Compute the degree of operating leverage. 4. Compute the new operating income if sales are 20% higher than expected

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