FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Stuart Company
Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:

Variable costs per unit:  
Production $5
SG&A $1
Fixed costs:  
Production $40,000
SG&A $60,000
Estimated volume 20,000 units


Refer to Stuart Company. What is Stuart's projected degree of operating leverage for the current year?

Select one:

a. 2.25

b. 1.67

c. 3.75

d. 1.80

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