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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $76.15. The variable cost per unit is
The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $76.15. The variable cost per unit is $24.52, Poseidon Swim has an average fixed cost per year of $6,922. Assume that the current level of sales is 421 units. What will be the resulting percentage change in EBIT if they expect units sold to change by 1.1 percent? (You should calculate the degree of operating leverage first).
Round the answer to two decimal places.
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