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A firm considers the following three plans to produce its new items. The demand for the new items is expected to be 30,000 units that
A firm considers the following three plans to produce its new items. The demand for the new items is expected to be 30,000 units that can be sold at $20 per unit. Plan A Plan B Plan C Variable cost $8 per unit $7 per unit $6 per unit Fixed cost $100,000 $200,000 $300,000 1. Find the degree of operating leverage (DOL) for each plan. 2. What is the key reason for one of the three plans to have the highest DOL
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