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Tunnel Co. fixed costs are at $100,000. The company has sales of 10,000 units with a price of $85 and variable cost per unit of

Tunnel Co. fixed costs are at $100,000. The company has sales of 10,000 units with a price of $85 and variable cost per unit of $40. The depreciation is $50,000 and taxes are 20 percent. What is the degree of operating leverage?

0.65

-1.46

0.91

1.00

1.34

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