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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $38. The variable cost per unit is

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $38. The variable cost per unit is $25, Poseidon Swim has average fixed costs per year of $35,194.

Assume that current level of sales is 5,328 units. What will be the resulting percentage change in EBIT if they expect units sold to be increased by 4 percent. (You should first calculate the degree of operating leverage)

Round the answer to two decimal places.

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