Operating Leverage In Light Of A Sales Agreement That Napa Valley Winery Just S

. (Operating leverage) In light of a sales agreement that Napa Valley Winery just signed with a national chain of health food restaurants, NVW’s CFO Jackie Cheng is estimating that NVW’s sales in the next year will be 50,000 bottles at $30 per bottle. If variable costs are expected to be 70 percent of sales, what is NVW’s expected degree of operating leverage?

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