The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage. DOL is 0.57 DOL is 2.57 а. b. с. DOL is 2.93 d. DOL is 3.93

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...
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The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and
price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage.
а.
DOL is 0.57
b.
DOL is 2.57
c.
DOL is 2.93
d.
DOL is 3.93
Transcribed Image Text:The firm has accounting breakeven in units is 100,000. If the variable cost, fixed cost, and price per unit are $30, $820,000 and $41, then what is the Degree of Operating leverage. а. DOL is 0.57 b. DOL is 2.57 c. DOL is 2.93 d. DOL is 3.93
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