Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $480 100 Variable
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:
| Per Unit | Percent |
Sales price | $480 | 100 |
Variable costs | 312 | 65 |
Unit contribution margin | $168 | 35 |
Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000. What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 600 units)? (Round your answer to three decimal places.)
A. | 5.118. |
B. | 4.405. |
C. | 5.630. |
D. | 5.000. |
E. | 4.846. |
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