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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 $ 560 100.00
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:
Per Unit | Percent | |
---|---|---|
Sales price | $ 560 | 100.00 |
Variable costs | 352 | 62.86 |
Unit contribution margin | $ 208 | 37.14 |
Assume that Shock Company is currently selling 680 computer monitors per month and monthly fixed costs are $80,800.
What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 680 units)? (Round your answer to three decimal places.)
Multiple Choice:
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2.604.
-
1.891.
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3.116.
-
2.486.
-
2.332.
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