Sales of $3800, has variable costs $300 and has fixed costs$1000. calculate the degree of operating leverage

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asked Jun 25, 2018 199k views

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ToddN · Answer 1 · 2018-06-30T03:23:32+0000

The degree of operating leverage can be calculated by subtracting variable costs from sales and dividing it by sales minus variable costs and fixed costs.
The degree of operating leverage is
(3,800−300)÷(3,800−300−1,000)
=1.4

Sales of $3800, has variable costs $300 and has fixed costs$1000. calculate the degree of operating leverage

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