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Business, 08.10.2020 17:01 exoticbunnylover123

Degree of Operating Leverage Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 3,500 units sold is $58,500. Required: Calculate the degree of operating leverage. Note: Round answer to one decimal place.

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Degree of Operating Leverage Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the...
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