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Maple Inc. has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. Total fixed expenses are $60,000. What is the degree of operating leverage?

Maple Inc. has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. Total fixed expenses are $60,000. What is the degree of operating leverage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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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Maple Inc. has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. Total fixed expenses are $60,000. What is the degree of operating leverage?
Transcribed Image Text:Maple Inc. has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. Total fixed expenses are $60,000. What is the degree of operating leverage?
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