A firm has annual fixed costs of $50,000. They manufacture and sell decorative protective face masks at
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Question:
A firm has annual fixed costs of $50,000. They manufacture and sell decorative protective face masks at a price of $15/unit, withvariable costs of $3.75/unit. The firm sells 21,500 units per year, and pays no taxes.
What is the firm's degree of operating leverage (DOL)?[Round your answer to 2 (two) decimal places]
DOL =
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