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Vaughn Manufacturing's degree of operating leverage is 4.0. Warren Corporation's degree of operating leverage is 10.0. Warren's earnings would go up (or down) by as

Vaughn Manufacturing's degree of operating leverage is 4.0. Warren Corporation's degree of operating leverage is 10.0. Warren's earnings would go up (or down) by as much as Vaughn's with an equal increase (or decrease) in sales. 2.5 times 6.0 times 3.0 14.0 times

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