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Vaughn Company has sales of $507000, variable costs of $423000, and fixed costs of $30000. Ivanhoe Company has sales of $507000, variable costs of $199000,

Vaughn Company has sales of $507000, variable costs of $423000, and fixed costs of $30000. Ivanhoe Company has sales of $507000, variable costs of $199000, and fixed costs of $258000. Ivanhoe's degree of operating leverage is

0.54.

1.56.

6.16.

5.68.

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