Patterson Company's Variable Expenses Are 55% of Sales

question 38

Multiple Choice

Patterson Company's variable expenses are 55% of sales.At a $400,000 sales level,the degree of operating leverage is 5.If sales increase by $30,000,the new degree of operating leverage will be (rounded) :

• A)5.00
• B)3.18
• C)2.91
• D)3.91

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