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Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00

Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:

Per Unit Percent
Sales price $ 460 100.00
Variable costs 237 51.52
Unit contribution margin $ 223 48.48

Assume that Staley Co. is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.)

Multiple Choice

  • 2.813.

  • 2.100.

  • 3.325.

  • 2.695.

  • 2.541.

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