Tidesurf Co. manufactures surfboards. The average selling price of one surfboard is $120. The variable cost per unit is $48, and Tidesurf Co. has average fixed costs per year of $15,000. Determine the degree of operating leverage (DOL) for the production and sales level of 320 surfboards.

Tidesurf Co. manufactures surfboards. The average selling price of one surfboard is $120. The variable cost per unit is $48, and Tidesurf Co. has average fixed costs per year of $15,000. Determine the degree of operating leverage (DOL) for the production and sales level of 320 surfboards.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

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Question

Determine the degree of operating leverage on these general accounting question

Tidesurf Co. manufactures surfboards. The average selling price of
one surfboard is $120. The variable cost per unit is $48, and
Tidesurf Co. has average fixed costs per year of $15,000. Determine
the degree of operating leverage (DOL) for the production and sales
level of 320 surfboards.

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