Let$$s assume, instead, that the roommate thing doesn$$t work out. Edward now wants to consider other ways to increase his profit in this business.

$($c$1)$ If he increases his selling price by $20\%$ and maintains the same volume of four units per month, does it affect his DOL? $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Effect on DOL enter the effect on degree of operating leverage rounded to $2$ decimal places

$1\mathrm{.}36$

Incorrect answerselect an option

Decrease

Correct answer

$($c$2)$ If so$,$ what does this changed DOL mean for Edward?

Operating income select an effect

will not be affected

by a change in sales.