Question: Sales Variable cost Fixed cost A $ 48,600 16,600 28.000 B 48,800 12,800 30,000 Required: (a) What is operating leverage? How can the degree of

Sales Variable cost Fixed cost A $ 48,600 16,600 28.000 B

Sales Variable cost Fixed cost A $ 48,600 16,600 28.000 B 48,800 12,800 30,000 Required: (a) What is operating leverage? How can the degree of operating leverage be used in analyzing changes in sales? (b) Calculate Outback Products' degree of operating leverage (DOL). () Outback Products forecasts a 6% increase in sales. What is the expected effect in percent on pretax income

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