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The Poseidon Swim Company produces Swim trunks. The average selling price for one of their Swim trunks is $83.64. The variable cost per unit is
The Poseidon Swim Company produces Swim trunks. The average selling price for one of their Swim trunks is $83.64. The variable cost per unit is $ 21. 24, Poseidon Swim has average fixed costs per year of $7,692.
Assume the current level of sales is 382 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -1.7 percent? ( you should calculate the degree of operating leverage first)
Round the answer to two decimal places.
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