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Hopi Corporation expects the following operating results for next year

Hopi Corporation expects the following operating results for next year:


Sales $400,000
Margin of safety $100,000
Contribution margin ratio 75%
Degree of operating leverage 4        

What is Hopi expecting total fixed expenses to be next year?

A) $75,000
B) $100,000
C) $200,000
D) $225,000
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