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Use the following to answer questions A-C: Paxton Corp has provided the following data concerning its operations last month: Sales $400,000 Variable Expenses $250,000 Fixed

  1. Use the following to answer questions A-C:

Paxton Corp has provided the following data concerning its operations last month:

Sales

$400,000

Variable Expenses

$250,000

Fixed Expenses

$100,000

Paxton Corp is a retailing organization.

A.

What is the degree of operating leverage?

B.

What is the contribution margin ratio?

C.

What is the break-even point in sales dollars, rounded to the nearest dollar?

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