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You are presented with the following information for A Ltd: Degree of operating leverage 5 Number of units sold 50,000 Operating profit $450,000 Calculate A

  1. You are presented with the following information for A Ltd:

Degree of operating leverage

5

Number of units sold

50,000

Operating profit

$450,000

  1. Calculate A Ltds per unit break-even point.

  1. Using A Ltds operating leverage, calculate the increase in profits if sales increase by 5%.

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