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Operating Leverage Income statements for two different companies in the same industry are as follows: Elgin, Inc. Hobart, Inc. Sales $1,000,000 $1,000,000 Less: Variable costs

Operating Leverage Income statements for two different companies in the same industry are as follows: Elgin, Inc. Hobart, Inc. Sales $1,000,000 $1,000,000 Less: Variable costs 800,000 600,000 Contribution margin $200,000 $400,000 Less: Fixed costs 160,000 360,000 Operating income

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