DB is producing headphones but first mgmt wants to determine it’s degree of operating leverage. DB has a base level of sales of 327,258 units. Sales price per unit is $131.95 and variable cost per unit is $61.53.

DB is producing headphones but first mgmt wants to determine it’s

degree of operating leverage. DB has a base level of sales of 327,258 units. Sales price per unit is $131.95 and variable cost per unit is $61.53. Total annual operating fixed costs are $6,938,900.
Assume that DB expects units sold to be changed by 6.6%. What will be the resulting percentage change in EBIT? (calc the degree of operating leverage first)

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"