Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48 Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.) Multiple Choice 2.813. 2.100. 3.325. 2.695. 2.541.
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48 Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800. What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.) Multiple Choice 2.813. 2.100. 3.325. 2.695. 2.541.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Question
Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:
| Per Unit | Percent | |
|---|---|---|
| Sales price | $ 460 | 100.00 |
| Variable costs | 237 | 51.52 |
| Unit contribution margin | $ 223 | 48.48 |
Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.
What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.)
Multiple Choice
-
2.813.
-
2.100.
-
3.325.
-
2.695.
-
2.541.
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