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In the most recent month,Sardella Corporation's total contribution margin was $46,200 and its net operating income $13,200.
Required:
a.Compute the degree of operating leverage to two decimal places.
b.Using the degree of operating leverage,estimate the percentage change in net operating income that should result from a 10% increase in sales.
Demand for Labor
The total amount of workers employers are willing and able to hire at a given wage rate in a certain period.
Unemployment
A situation where individuals who are willing and able to work cannot find a job.
Persistent Unemployment
A situation where unemployment remains high or continues over a long period, often due to structural factors in the economy.
Wage Discrimination
The practice of paying different wages to employees who perform similar jobs, based on non-job-related factors like gender, race, or age.
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