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Sheridan Company's degree of operating leverage is 2.40. Carla Vista Corporation's degree of operating leverage is 10.56. Carla Vista's earnings would go up (or down)
Sheridan Company's degree of operating leverage is 2.40. Carla Vista Corporation's degree of operating leverage is 10.56. Carla Vista's earnings would go up (or down) by _as much as Sheridan's with an equal increase (or decrease) in sales. 1/4.40 times 2.40 times 4.40 times 10.56 times
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