27 Kulwicki Corporation wants to determine the effect of an expansion of its sales on...
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Kulwicki Corporation wants to determine the effect of an expansion of its sales on its operating income (EBIT). The firm's current degree of operating leverage is 5.00. It projects new unit sales to be 183,540, an increase of 50,540 over last year's level of 133,000 units. Last year's EBIT was $65,000. Based on a degree of operating leverage of 5.00, what is this year's expected EBIT with the increase in sales?
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