Question
A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed
A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $419,632. The first years sales estimates are $1,250,000. Calculate the firms degree of operating leverage (DOL).
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
