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EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
At a sales level of $270,000, the magnitude of operating leverage for Donuts unlimited is 1.5.

Transcribed Image Text:At a sales level of $270,000, the magnitude of
operating leverage for Donuts Unlimited is 1.5. If
sales increase by 20%, profits (net income) will
increase by:
a. 20%
b. 1.5%
c. 15%
d. 30%
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