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Question(s) / Instruction(s):

A manufacturer of cedar shingles has supplied the following data: Bundles of cedar shakes produced and sold 400,000 Sales revenue $2,720,000 Variable manufacturing expense $1,380,000 Fixed manufacturing expense $718,000 Variable selling and administrative expense $440,000 Fixed selling and administrative expense $80,500 Net operating income $101,500 The company's degree of operating leverage is closest to: a. 6.87 b. 10.87 c. 8.87 d. 7.07

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