The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $70.43. The variable cost per unit is $19.96, Poseidon Swim has average fixed costs per year of $5,278. Assume that current level of sales is 320 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -1.1 percent? (You should calculate the degree of operating leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimal places

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $70.43. The variable cost per unit is $19.96, Poseidon Swim has average fixed costs per year of $5,278. Assume that current level of sales is 320 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -1.1 percent? (You should calculate the degree of operating leverage first). (Write the percentage sign in the "units" box). Round the answer to two decimal places

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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