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What would be the after-tax profit of a company that has a degree of operating leverage of 4, if variable costs per unit are $2.50;
What would be the after-tax profit of a company that has a degree of operating leverage of 4, if variable costs per unit are $2.50; annual fixed costs (excluding depreciation) are $350,000, and annual depreciation is $250,000? Assume that the tax rate is 25%. a. $200,000 b. $170,000 c. $100,000 d. $150,000 e. $112,500
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