Orion Corporation current

Orion Corporation current

Orion Corporation currently sells 200,000 units a year at a price of $4.00 a unit. Its variable costs are approximately 15% of sales, and its fixed operating costs amount to 40% of revenues at its current output level. Although fixed costs are based on revenues at the current output level, the cost level is fixed. What is Orion’s degree of operating leverage in sales dollars?

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