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Beryl Expects Her Sales to Increase by 20 Percent Next

Question 117

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Beryl expects her sales to increase by 20 percent next year.If this year's sales are $500,000 and the degree of operating leverage (DOL) is 1.4, what is the expected level of operating income (EBIT) for next year if this year's EBIT is $100,000?

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Next year's EBIT equals (this ...

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