What is nvw expected degree of operating leverage


Problem: An (Operating leverage) In light of a sales agreement that NVW just signed with a national chain of health food restaurants, NVW CFO, Jackie Cheng, is estimating that NVW's sales in the next year will be 50,000 bottles at $30 per bottle. If the variable costs are expected to be 70% of sales, what is NVW's expected degree of operating leverage?

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