Company X has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If total fixed costs are $93,600, the degree of operating leverage is: (rounded to two decimal places) O a. None of the given answers Ob. 0.79 O. 2.50 O d. 1.73 O e. 1.67

Company X has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If total fixed costs are $93,600, the degree of operating leverage is: (rounded to two decimal places) O a. None of the given answers Ob. 0.79 O. 2.50 O d. 1.73 O e. 1.67

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

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Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...

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Company X has sales of 3,000 units at $80 per unit. Variable costs are 35% of the sales price. If total fixed costs are $93,600, the
degree of operating leverage is: (rounded to two decimal places)
O a. None of the given answers
O b. 0.79
О с. 2.50
O d. 1.73
O e. 1.67

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