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Swanson Corporation has sales of 10,000 units at $80 per unit. Variable costs are 75% of sales price. If total fixed costs are $120,000, the

Swanson Corporation has sales of 10,000 units at $80 per unit. Variable costs are 75% of sales price. If total fixed costs are $120,000, the degree of operating leverage is closest to:

a.

0.10

b.

0.40

c.

10.00

d.

2.50

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