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What is the degree of operating leverage? Sales = 100,000 units; price = $45; variable cost = $27; fixed costs = $975,000; depreciation = $250,000;

What is the degree of operating leverage? Sales = 100,000 units; price = $45; variable cost = $27; fixed costs = $975,000; depreciation = $250,000; tax rate = 34%.

A)2.55

B)1.63

C)1.37

D)1.22

E)2.22

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