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
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
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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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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