Olympia companyrsquos variable expenses are 60 of sales at


Olympia Company’s variable expenses are 60% of sales. At a $600,000 sales level, the degree of operating leverage is 4. The company's chief executive officer has decided to purchase and install a new automated assembly line that will increase the company's fixed expenses by 80% but will reduce variable expenses per unit of product by 40%. Assuming that the sales level remains the same and the change will not affect the sales price, determine the new degree of operating leverage after the new assembly is installed

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Financial Accounting: Olympia companyrsquos variable expenses are 60 of sales at
Reference No:- TGS01005018

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