Robertson Enterprises' variable expenses are 50% of sales. At a $500,000 sales level, the degree of operating leverage is 4. If sales increase by $50,000, what will the new degree of operating leverage be?

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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I need answer of this question solution general accounting

Robertson Enterprises' variable expenses are 50% of
sales. At a $500,000 sales level, the degree of
operating leverage is 4. If sales increase by $50,000,
what will the new degree of operating leverage be?
Transcribed Image Text:Robertson Enterprises' variable expenses are 50% of sales. At a $500,000 sales level, the degree of operating leverage is 4. If sales increase by $50,000, what will the new degree of operating leverage be?
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