Subject: financial accounting Ingram Enterprises has variableexpenses equal to 65% of sales. At a$500,000 sales level, the degree ofoperating leverage is 4.5. If salesincrease by $50,000, what will be thenew degree of operating leverage?

Explanation of Degree of Operating Leverage (DOL):The Degree of Operating Leverage (DOL) measures…

Answered: Ingram Enterprises has variable…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 11P

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Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the degree of operating leverage is 4.5. If sales increase by $50,000, what will be the new degree of operating leverage? Need answer
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What is the operating leverage ?
Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the degree of operating leverage is 4.5. If sales increase by $50,000, what will be the new degree of operating leverage? please provide answer
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Ingram Enterprises has variable expenses equal to 65% of sales. At a $500,000 sales level, the degree of operating leverage is 4.5. If sales increase by $50,000, what will be the new degree of operating leverage?