Wilson Manufacturing produces 5,500 units of a product that sells for $65 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $95,000, the degree of operating leverage is:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Wilson Manufacturing produces 5,500 units of a product that sells
for $65 per unit. Variable expenses are 40% of the selling price. If
total fixed expenses are $95,000, the degree of operating leverage
is:
Transcribed Image Text:Wilson Manufacturing produces 5,500 units of a product that sells for $65 per unit. Variable expenses are 40% of the selling price. If total fixed expenses are $95,000, the degree of operating leverage is:
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