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Required information The Foundational 15 (LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] (The following information applies
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Ans. Degree of operating leverage is the ratio of contribution margin and net operating leverage. It can be calculated by using the following formula:

Degree of operating leverage = Contribution margin / Net operating income

= $7,500 / $3,300

= 2.27

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