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Margin of Safety and Operating Leverage: Income statements for two different companies in the same industry are as follows: a. Calculate the degree of operating

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Margin of Safety and Operating Leverage: Income statements for two different companies in the same industry are as follows: a. Calculate the degree of operating leverage for each firm. b. Calculate the margin of safety in dollars for each firm. c. Determine the operating income for each firm if sales increase by 20%

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