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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
- 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 Ltds per unit break-even point.
- Using A Ltds operating leverage, calculate the increase in profits if sales increase by 5%.
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