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Managerial Accounting

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Calc Change in Profits Given Change in Sales Operating Leverage

MGRACT-HYRL8V

Your client's information for the recent year just ended are shown below:

Last Year's Operations:
Sales \$1,500,000
Variable costs \$600,000
Fixed costs \$300,000

If their sales volume increases by 2%, by what percentage do you expect their profits to increase (express response as a percent)?