Centex, a producer of telephone systems for small businesses, has current sales of $43 million and variable operating costs of $27.95 million. Centex expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $9.1 million. What is the DOL for Centex? a. 2.11 b. 3.31 c. 1.0 d. none

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Centex, a producer of telephone systems for small businesses,
has current sales of $43 million and variable operating costs of
$27.95 million. Centex expects to increase sales in the coming
year by 15% while keeping fixed operating costs constant at
$9.1 million.
What is the DOL for Centex?
a. 2.11
b. 3.31
c. 1.0
d. none
Transcribed Image Text:Centex, a producer of telephone systems for small businesses, has current sales of $43 million and variable operating costs of $27.95 million. Centex expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $9.1 million. What is the DOL for Centex? a. 2.11 b. 3.31 c. 1.0 d. none
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