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Jamesly Company's variable expenses are 60% of sales. At a 300,000 sales level, the degree of operating leverage is 10. The total fixed costs are
Jamesly Company's variable expenses are 60% of sales. At a 300,000 sales level, the degree of operating leverage is 10. The total fixed costs are 108,000. If sales increase by 30,000, the new degree of operating leverage will be:
a. | 5.5 | |
b. | 10 | |
c. | 4.5 | |
d. | 11 |
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