Calculate deci-bell''s degree of operating leverage

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Question

Deci-Bell, Inc. is producing new headphones, but first management wants to determine its degree of operating leverage. Deci-Bell Inc. has a base level of sales of 367,406 units. Sales price per unit is $128.76 and variable cost per unit is $76.93. Total annual operating fixed costs are $6,372,284.

Calculate Deci-Bell's degree of operating leverage.

Reference no: EM133239496

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