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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $85.65. The variable cost per unit is
The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $85.65. The variable cost per unit is $25.65, Poseidon Swim has average fixed costs per year of $8,292. Assume that current level of sales is 350 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -4.9 percent? (You should calculate the degree of operating leverage first)
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