If a firm is able to sustain the same level of operations, Accounting Basics

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If a firm is able to sustain the same level of operations

Question: If a firm is able to sustain the same level of operations in terms of sales and administrative expenses but reduces its materials cost by $50,000 through smarter purchases, what is the profit-leverage effect on gross profits? What is the profit-leverage effect on profits before taxes?

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Accounting Basics: If a firm is able to sustain the same level of operations

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Accounting Basics: If a firm is able to sustain the same level of operations

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