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The following data relate to a company that produces and sells a travel guide that is updated monthly: Fixed costs: Copy editing $6,000 Art work
The following data relate to a company that produces and sells a travel guide that is updated monthly:
Fixed costs:
Copy editing $6,000
Art work 2,000
Typesetting 72,000
Variable costs:
Printing and binding $3.20 per copy
Bookstore discounts 4.00 per copy
Salespersons' commissions 0.50 per copy
Author's royalties 2.00 per copy
Each book sells for $20.00. The company sold 8,000 books in June and 10,000 books in July.
The degree of operating leverage for July is:
Group of answer choices
the same as that for June.
higher than that for June.
lower than that for June.
not determinable.
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