Crane Designs has fixed costs of $229,600 and produces one graphic arts product with a selling price of $85 and variable costs of $45 per unit. Crane is currently selling 10,865 units. (a) Your answer is correct. What is Crane Design's degree of operating leverage (DOL)? (Round answer to 2 decimal places, e.g. 5.25.) (b) Degree of operating leverage (DOL) eTextbook and Media 2.12 If sales revenues are expected to increase by 10%, what will be the expected operating profit? Expected operating profit $ Attempts: unlimited

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Crane Designs has fixed costs of $229,600 and produces one graphic arts product with a selling price of $85 and variable costs of $45
per unit. Crane is currently selling 10,865 units.
(a)
Your answer is correct.
What is Crane Design's degree of operating leverage (DOL)? (Round answer to 2 decimal places, e.g. 5.25.)
(b)
Degree of operating leverage (DOL)
eTextbook and Media
2.12
If sales revenues are expected to increase by 10%, what will be the expected operating profit?
Expected operating profit $
Attempts: unlimited
Transcribed Image Text:Crane Designs has fixed costs of $229,600 and produces one graphic arts product with a selling price of $85 and variable costs of $45 per unit. Crane is currently selling 10,865 units. (a) Your answer is correct. What is Crane Design's degree of operating leverage (DOL)? (Round answer to 2 decimal places, e.g. 5.25.) (b) Degree of operating leverage (DOL) eTextbook and Media 2.12 If sales revenues are expected to increase by 10%, what will be the expected operating profit? Expected operating profit $ Attempts: unlimited
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