Sale increased from $8,000 to $10,000. Due to the higher sale level, variable costs increased from $5,000

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Sale increased from $8,000 to $10,000. Due to the higher sale level, variable costs increased from $5,000 to $6,000. Fixed costs stay the same as $1,500.

For this particular level of sales and costs, what is the Degree of operating leverage?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Jun 05, 2023 03:50 AM

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Sale increased from $8,000 to $10,000. Due to the higher sale level, variable costs increased from $5,000

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The degree of operating leverage DOL measures the sensitivity of operating income to ch... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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