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Patterson company's variable expenses are 55% of sales. At a $400,000 sales level, the degree of operating leverage is 5. IF sales increase by $30,000,

Patterson company's variable expenses are 55% of sales. At a $400,000 sales level, the degree of operating leverage is 5. IF sales increase by $30,000, the new degree of operating leverage will be (rounded):

a. 5.00

b. 3.18

c. 2.91

d. 3.91

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