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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.

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