Paxton Corp Has Provided the Following Data Concerning Its Operations

Paxton Corp has provided the following data concerning its operations last month:
$\begin{array} { | l | r | } \hline \text { Sales } & \$ 400,000 \\\hline \text { Variable expenses } & \$ 250,000 \\\hline \text { Fixed expenses } & \$ 100,000 \\\hline\end{array}$ Paxton Corp is a retailing organization.


-What is the degree of operating leverage?

A) 3.
B) 8.
C) 0.33.
D) 5.

Correct Answer:

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