Knox Industries has sales of 2,450 units at $78 a unit. Variable expenses are 35% of the selling price. If total fixed expenses are $92,000, what is the degree of operating leverage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 11P
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What is the degree of operating leverage?

Knox Industries has sales of 2,450 units
at $78 a unit. Variable expenses are 35%
of the selling price. If total fixed expenses
are $92,000, what is the degree of
operating leverage?
Transcribed Image Text:Knox Industries has sales of 2,450 units at $78 a unit. Variable expenses are 35% of the selling price. If total fixed expenses are $92,000, what is the degree of operating leverage?
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