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5. Given the following information, what is the degree of operating leverage? Price = $40 per unit; variable cost = $20 per unit; fixed costs
5. Given the following information, what is the degree of operating leverage? Price = $40 per unit; variable cost = $20 per unit; fixed costs = $95,000 per year; depreciation = $35,000 per year; sales = 10,000 units per year. Ignore tax effects. A. 0.9 B. 1.3 C. 1.5 D. 1.9 E. 2.4
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