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West Company's sales increased from $80,000 to $84,000 while net operating income rose from $16,000 to $18,400. What was the company's degree of operating leverage? a) 3.0 b) 4.5 c) 6.0 d) 2.5

West Company's sales increased from $80,000 to $84,000 while net operating income rose from $16,000 to $18,400. What was the company's degree of operating leverage? a) 3.0 b) 4.5 c) 6.0 d) 2.5

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 25E
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West Company's sales increased from $80,000 to $84,000 while net operating income rose from $16,000 to $18,400. What was the company's degree of operating leverage? a) 3.0 b) 4.5 c) 6.0 d) 2.5
Transcribed Image Text:West Company's sales increased from $80,000 to $84,000 while net operating income rose from $16,000 to $18,400. What was the company's degree of operating leverage? a) 3.0 b) 4.5 c) 6.0 d) 2.5
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