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    Degree of operating leverage

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    Faust Corporation has provided its contribution format income statement for August
    Sales = $153,300
    Variable expense = $94,900
    Contribution Margin = $58400
    Fixed Expense = $50300
    Net operating Expense = $8100

    The degree of operating leverage is closest to:
    A. 18.93
    B. 0.14
    C. 0.05
    D. 7.21

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    https://brainmass.com/business/accounting/business-degree-of-operating-leverage-371714

    Solution Summary

    The solution explains how to calculate the degree of operating leverage

    $2.19

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