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A company has a degree of operating leverage (DOL) of 3.5. If its sales increase by 4%, what is the percentage change in its operating profits?

A company has a degree of operating leverage (DOL) of 3.5. If its sales increase by 4%, what is the percentage change in its operating profits?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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A company has a degree of operating leverage (DOL) of 3.5. If its sales increase by 4%, what is the percentage change in its operating profits?
Transcribed Image Text:A company has a degree of operating leverage (DOL) of 3.5. If its sales increase by 4%, what is the percentage change in its operating profits?
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