Marshall Corporation has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $72,000, calculate the degree of operating leverage (DOL).

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
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Hello tutor please given correct answer general Accounting

Marshall Corporation has sales of 2,500 units at $80 per
unit. Variable expenses are 40% of the selling price. If total
fixed expenses are $72,000, calculate the degree of
operating leverage (DOL).
Transcribed Image Text:Marshall Corporation has sales of 2,500 units at $80 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $72,000, calculate the degree of operating leverage (DOL).
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