(Answered) Db is producing headphones but first mgmt wants to

Finance

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)

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