Herbert, a producer of networking equipment for medium businesses, has current sales of $72 million and variable operating costs of $51.84 million. Herbert expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $15.6 million. What is the DOL for Herbert? a. 2.11 b. 4.42 c. 1.0 d. 5.90
Herbert, a producer of networking equipment for medium businesses, has current sales of $72 million and variable operating costs of $51.84 million. Herbert expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $15.6 million. What is the DOL for Herbert? a. 2.11 b. 4.42 c. 1.0 d. 5.90
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 1EP
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Transcribed Image Text:Herbert, a producer of networking equipment for medium
businesses, has current sales of $72 million and variable
operating costs of $51.84 million. Herbert expects to increase
sales in the coming year by 15% while keeping fixed operating
costs constant at $15.6 million.
What is the DOL for Herbert?
a. 2.11
b. 4.42
c. 1.0
d. 5.90
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