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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:

  • 2.604.

  • 1.891.

  • 3.116.

  • 2.486.

  • 2.332.

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