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GG Test, Inc., has a DOL of 2 at its current production and sales level of 10,000 units. The resulting operating income figure is 1,000.
GG Test, Inc., has a DOL of 2 at its current production and sales level of 10,000 units. The resulting operating income figure is 1,000. a. If sales are expected to increase by 20 percent from the current 10,000-unit sales position, what would be the resulting operating profit figure? b. At the companys new sales position of 12,000 units, what is the firms new DOL figure?
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