TechVision Electronics has fixed costs of $850,000 and depreciation expenses of $400,000. The company is projected to generate $450,000 in profits. What is its degree of operating leverage (DOL)? a. 2.56 b. 3.78 c. 2.78 d. 2.92

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter10: Cost Analysis For Management Decision Making
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TechVision Electronics has fixed costs of $850,000 and depreciation expenses of
$400,000. The company is projected to generate $450,000 in profits.
What is its degree of operating leverage (DOL)?
a. 2.56 b. 3.78 c. 2.78 d. 2.92
Transcribed Image Text:TechVision Electronics has fixed costs of $850,000 and depreciation expenses of $400,000. The company is projected to generate $450,000 in profits. What is its degree of operating leverage (DOL)? a. 2.56 b. 3.78 c. 2.78 d. 2.92
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