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Sara Lee has noted that every time the sales quantity increases by 5 percent for a particular project, the operating cash flow for the project

Sara Lee has noted that every time the sales quantity increases by 5 percent for a particular project, the operating cash flow for the project increases by 8 percent. What is the degree of operating leverage for this project if the contribution margin is $2.50?

Select one: A. .40 B. .63 C. .71 D. 1.40 E. 1.60

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