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The Watson Corporation sells spools of thread to industrial clothing suppliers. They sell 25 pound spools of thread for $150 each. The Watson...
is the degree of operating leverage at 20,000 bags and at 25,000 bags? What is the degree of operating leverage change as the quantity sold increases? DOL...
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80,000] DOL (25,000) = $125,000 / $45,000 DOL = 2.78 times The DOL decreases as the quantity sold increases because firm is now operating at a larger...
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