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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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The solution explains how to calculate the degree of operating leverage

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