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Company XYZ produces a product Alpha that has a dregree of operating, leverage of 3.5. Suppose a new order is

received and the rate of output is increased by 10 percent. The percentage effect that this increase in output will have on the profit made from producing and selling commmodity alpha will be:

a. more than 3.5 % but less than 35%

b. 3.5 percent

c. 35 percent

d. less than 3.5 percent

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