Problema company is producing new headphones but 1st, Ask an Expert

Finance

Problem:

A company is producing new headphones, but 1st management wants to determine its degree of operating leverage. The company has a base level of sales of 477,810 units. Sales price unit is $137.75 and variable cost per unit is $94.08. Total annual operating fixed costs are $6,130,240.

Required:

Question: Calculate the degree of operating leverage.

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163445

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