Regal Corporation currently has sales of $81,000; variable costs of $60,000; and fixed costs of $11,700. The current degree of operating leverage is_________. After a 10% increase in sales, the degree of operating leverage will be_________.

Question 13Answer

a.

2.26, 1.68

b.

4.00, 6.92

c.

4.00, 5.13

d.

2.26, 2.03