The following information relates to financial projections of McKay Company: Projected sales 60,000 units Projected variable costs
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Question:
The following information relates to financial projections of McKay Company:
Projected sales | 60,000 units |
Projected variable costs | $2.00 per unit |
Projected fixed costs | $50,000 per year |
Projected unit sales price | $7.00 |
Refer to McKay Company. If McKay Company achieves its projections, what will be its degree of operating leverage?
Select one:
a. 6.00
b. 1.20
c. 2.40
d. 1.68
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