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Vince Corporation's variable expenses are 60% of sales. At a $200,000 sales level, the degree of operating leverage is 5. If sales increased by $20,000,
Vince Corporation's variable expenses are 60% of sales. At a $200,000 sales level, the degree of operating leverage is 5. If sales increased by $20,000, the new degree of operating leverage will be (rounded):
a) 2.86
b) 3.67
c) 1.83
d) 4.20
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