Question
May Clothing is a retail men's clothing store. May's variable cost is $21.60 per shirt and the sales price is $43.20 per shirt. May plans
May Clothing is a retail men's clothing store. May's variable cost is $21.60 per shirt and the sales price is $43.20 per shirt. May plans to sell 260,000 shirts for the year and, at this level, would generate a before-tax profit of $2,340,000. What is the degree of operating leverage (DOL) at this volume level? (Round your answer to 1 decimal place.)
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
