Shinn Co. sells custom markers for $3.00 apiece. The variable cost per marker is $0.83. Shinn has fixed operating costs of $1,800 and fixed financing (interest) costs of $500. On average, Shinn sells 10,000 units. What is Shinn's degree of operating leverage (DOL)? A. 325% B. 300% C. 109% D. 223%

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Chapter16: Capital Structure Decisions
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Shinn Co. sells custom markers for $3.00 apiece. The variable cost per marker is $0.83. Shinn has fixed operating costs of $1,800 and fixed financing (interest) costs of $500. On average, Shinn sells 10,000 units. What is Shinn's degree of operating leverage (DOL)?

A. 325%

B. 300%

C. 109%

D. 223%

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