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Debra Gary sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:
Sales Revenue $65,000
Cost of Goods Sold (all variable) 30,000
Gross Margin 35,000
Selling Expenses (70% Variable) 8,000
Administrative Expenses (20% Variable) 12,000
Operating Income $15,000
What is Debras degree of operating leverage? (Round answer to 2 decimal places, e.g. 52.75.)
If Debra can increase sales by 10%, by what dollar amount will her operating income increase? (Round answer to 0 decimal places, e.g. 5,275.)
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