Centex, a producer of telephone systems for small businesses, has current sales of $58 million and variable operating costs of $42.55 million. Centex expects to increase sales in the coming year by 18% while keeping fixed operating costs constant at $12.3 million. What is the DOL for Centex? a. 2.11 b. 3.31 c. 1.0 d. 4.90
Centex, a producer of telephone systems for small businesses, has current sales of $58 million and variable operating costs of $42.55 million. Centex expects to increase sales in the coming year by 18% while keeping fixed operating costs constant at $12.3 million. What is the DOL for Centex? a. 2.11 b. 3.31 c. 1.0 d. 4.90
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 $58 million and variable operating costs of
$42.55 million. Centex expects to increase sales in the coming
year by 18% while keeping fixed operating costs constant at
$12.3 million.
What is the DOL for Centex?
a. 2.11
b. 3.31
c. 1.0
d. 4.90
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