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Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:     Per Unit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48   Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.   What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.)   Multiple Choice   2.813.   2.100.   3.325.   2.695.   2.541.

Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:     Per Unit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48   Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.   What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.)   Multiple Choice   2.813.   2.100.   3.325.   2.695.   2.541.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Shock Company manufactures computer monitors. The following is a summary of its basic cost and revenue data:

 

  Per Unit Percent
Sales price $ 460 100.00
Variable costs 237 51.52
Unit contribution margin $ 223 48.48

 

Assume that Shock Company is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.

 

What is Shock Company's degree of operating leverage (DOL) at this sales volume (i.e., at 590 units)? (Round your answer to three decimal places.)

 

Multiple Choice
  •  

    2.813.

  •  

    2.100.

  •  

    3.325.

  •  

    2.695.

  •  

    2.541.

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