Calculate the degree of operating leverage, Accounting Basics

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Calculate the degree of operating leverage

Question:

Calculate the degree of operating leverage given the following information: sales of $25,000; variable costs $13,000, and operating income of $7,000 for year one, and sales of $40,000; variable costs of $15,000; and operating income of $16,000 for year 2. Your answer should be expressed as a percentage, and rounded to two decimal places.

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Accounting Basics: Calculate the degree of operating leverage

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