Hamlin Company, a retailer, had cost of goods sold of $190,000 last year. The beginning inventory balance was $22,000 and the ending inventory balance was $28,000. The company's inventory turnover was closest to:

Operating leverage results from the existence of operating costs in a firm's income stream

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Operating leverage may be defined as the potential use of fixed operating costs to magnify the effects of changes in sales on a firm's earnings before interest and taxes (EBIT)

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