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Trident Food Corporation generated the following income statement for the most recent fiscal year: Sales revenues$150,000 Variable cost of sales(120,000) Gross profit30,000 Fixed operating costs(10,000)
Trident Food Corporation generated the following income statement for the most recent fiscal year:
Sales revenues$150,000
Variable cost of sales(120,000)
Gross profit30,000
Fixed operating costs(10,000)
Net operating income (EBIT)$20,000
What is the degree of operating leverage (DOL) for Trident Food?
Select one:
a.7.5
b.1.5
c.5.0
d.1.4
e.2.5
7
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