Answered: Harbor Industries has sales of 1,200…

Harbor Industries has sales of 1,200 units at $55 per unit. Variable expenses are 45% of the selling price. If total fixed expenses are $22,000, what is the degree of operating leverage (DOL)?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

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Question

100%

What is the degree of operating leverage on these accounting question?

Harbor Industries has sales of 1,200 units at $55 per unit.
Variable expenses are 45% of the selling price. If total fixed
expenses are $22,000, what is the degree of operating
leverage (DOL)?

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