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Manuel Company's Degree of Operating Leverage Is 2

Question 123

Multiple Choice

Manuel Company's degree of operating leverage is 2.0.Techno Corporation's degree of operating leverage is 6.0.Techno's earnings would go up (or down) by ___ as much as Manual's with an equal increase (or decrease) in sales.


A) 1/3
B) 2 times
C) 3 times
D) 6 times

Correct Answer:

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