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Outback Products Reports the Following Information  Total Contribution Margin $32,000 Total Fixed Costs $28,000\begin{array}{ll}\text { Total Contribution Margin } & \$ 32,000 \\\text { Total Fixed Costs } & \$ 28,000\end{array}

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Outback Products reports the following information:  Total Contribution Margin $32,000 Total Fixed Costs $28,000\begin{array}{ll}\text { Total Contribution Margin } & \$ 32,000 \\\text { Total Fixed Costs } & \$ 28,000\end{array}
Required:
(a) Calculate Outback Products' degree of operating leverage (DOL).
(b) Outback Products forecasts a 6% increase in sales. What is the expected effect in percent on pretax income?


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