Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 590 100.00
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:
Per Unit | Percent | |
---|---|---|
Sales price | $ 590 | 100.00 |
Variable costs | 367 | 62.20 |
Unit contribution margin | $ 223 | 37.80 |
Assume that Shock Company is currently selling 710 computer monitors per month and monthly fixed costs are $90,100.
What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 710 units)? (Round your answer to three decimal places.)
Multiple Choice
-
2.593.
-
1.880.
-
3.105.
-
2.475.
-
2.321.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started