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The Lee & Sons Company is considering a project with fixed costs of $243,000 and depreciation costs of $56,000. Variable cost is 69% of sales.
The Lee & Sons Company is considering a project with fixed costs of $243,000 and depreciation costs of $56,000. Variable cost is 69% of sales. Current sales are $1,116,900. Calculate the degree of operating leverage.
a.
8.80
b.
1.37
c.
7.33
d.
1.14
e.
3.35
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