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 $401,661. The first years sales estimates are $1,250,000. Calculate the firms degree of operating leverage (DOL). Answer to 2 decimal places.
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
8th Edition
0324258917, 9780324258912
