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Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follow

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June 8th, 2024

Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:Sales revenue$50,000Cost of goods sold (all variable)26,000Gross margin24,000Selling expenses (20% variable)8,000Administrative expenses (60% variable)12,000Operating income$ 4,000RequiredWhat is Mary”s degree of operating leverage?If Mary can increase sales by 10%, by how much will her operating income increase?

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