FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Question

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Harper Industries has sales of 3,000 units at $50 per unit.
Variable expenses are 30% of the selling price. If the total fixed
expenses are $85,000, what is the degree of operating
leverage (DOL)?
a. 2.50
b. 3.00
C. 5.25
d. 1.85
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Transcribed Image Text:Harper Industries has sales of 3,000 units at $50 per unit. Variable expenses are 30% of the selling price. If the total fixed expenses are $85,000, what is the degree of operating leverage (DOL)? a. 2.50 b. 3.00 C. 5.25 d. 1.85
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