Calculate degree of operating leverage given fixed costs, Finance Basics

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Calculate degree of operating leverage given fixed costs

Question: Calculate degree of operating leverage given: Fixed costs: $83,000 per year OCF at 9100 units is $102,900. Ignoring the effect of taxes, what is the degree of operation leverage? If units sold rise from 9,100 to 9,500, what will be the increase in OCF? What is the new DOL?

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Finance Basics: Calculate degree of operating leverage given fixed costs

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