Creston Technologies, a manufacturer of security systems for residential buildings, has current sales of $50 million and variable operating costs of $33.75 million. Creston expects to increase sales in the coming year by 18% while keeping fixed operating costs constant at $10.2 million. What is the DOL (Degree of Operating Leverage) for Creston Technologies?

Creston Technologies, a manufacturer of security systems for residential buildings, has current sales of $50 million and variable operating costs of $33.75 million. Creston expects to increase sales in the coming year by 18% while keeping fixed operating costs constant at $10.2 million. What is the DOL (Degree of Operating Leverage) for Creston Technologies?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EA: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per...

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