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  3. part 1 forde co. has an operating leverage of 4.

Part 1 Forde Co. has an operating leverage of 4. Sales are expected to...

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Accounting

Part 1

Forde Co. has an operating leverage of 4. Sales are expected to increase by 12% next year. Operating income is expected to increase by 3% unaffected expected to increase by 4 % expected to increase by 48%

Part 2

The difference between the current sales revenue and the sales at the break-even point is called the contribution margin price factor operating leverage margin of safety

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