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Contribution margin is 34000 and operating income is 12000 then degree...

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Management Accounting
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Contribution margin is $34000 and operating income is $12000, then degree of operating leverage will be

Answer & Solution
Correct Answer: Option B
Degree of operating leverage = Contribution margin ÷ Operating income
= $34000 ÷ $12000 = 2.84.
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