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Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year....

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Accounting

Head-First Company plans to sell 5,000 baseball bats at $75 each in the coming year. Unit contribution margin is $25. Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense). Operating income at 5,000 units sold is $75,500.

The degree of operating leverage (rounded to the nearest tenth) is

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