The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage. DOL is 0.57 DOL is 2.57 а. b. с. DOL is 2.93 d. DOL is 3.93

The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage. DOL is 0.57 DOL is 2.57 а. b. с. DOL is 2.93 d. DOL is 3.93

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Question

The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and
price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage.
а.
DOL is 0.57
b.
DOL is 2.57
c.
DOL is 2.93
d.
DOL is 3.93

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