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Help Save SE TB MC Qu. 6-117 Alpha Corporation reported the following data for its.. Alpha Corporation reported the following
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Operating Leverage = Contribution Margin / Operating Income

Contribution margin= Sales- Variable Cost

$670,000 - 420,000= $250,000

Operating Income= Contribution margin- Fixed cost

250,000- 200,000= $50,000

Degree of Operating Leverage = 250,000/50,000= 5

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