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Question 4 A firm has a DOL = 2 . 5 . If sales decrease by 2 0 % , then OCF will decrease by

Question

4

A firm has a DOL

= 2.5 .

If sales decrease by

20 %,

then OCF will

decrease by

20 %

increase by

5 %

increase by

20 %

decrease by

12.5 %

decrease by

50 %

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