Use the below information to answer the following question. Sales (1,000 units) $ 200,000 Variable costs 110,000
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Use the below information to answer the following question.
Sales (1,000 units) $ 200,000
Variable costs 110,000
Contribution margin 90,000
Fixed manufacturing costs 40,000
Operating income 50,000
Interest 10,000
Earnings before taxes 40,000
Taxes (30%) 12,000
Net income $ 28,000
Shares Outstanding 1,000
Refer to the table. The degree of operating leverage (DOL) is _____. Multiple Choice
1.62x
1.80x
3.50x
1.40x
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