Calculate the degree of operating leverage

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Deci-Bell, Inc. is producing new headphones. Deci-Bell Inc. has a base level of sales of 312,464 units. Sales price per unit is $148.61 and variable cost per unit is $61.52. Total annual operating fixed costs are $6,294,441.

Assume that Deci-Bell expects units sold to be decreased by 2.5 percent. What will be the resulting percentage change in EBIT? Round the answer to two decimal places. (You should first calculate the degree of operating leverage)

Reference no: EM13724903

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