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QUESTION

Bonita Industries' degree of operating leverage is 2. Warren Corporation's degree of operating leverage is 12.

Bonita Industries' degree of operating leverage is 2.0. Warren Corporation's degree of operating leverage is 12.0. Warren's earnings would go up (or down) by _____ as much as Bonita's with an equal increase (or decrease) in sales.

14.0 times

10.0 times

6.0 times

1.0

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