Calculate the degree of operating leverage first

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The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $70.30. The variable cost per unit is $23.99. Poseidon Swim has average fixed costs per year of $9,452. Assume that current level of sales is 477 units. What will ne the resulting percentage change in EBIT if they expect units sold to changes by 1.3 percent? ( You should calculate the degree of operating leverage first.)

Reference no: EM131087803

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Calculate the degree of operating leverage first : The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $70.30. The variable cost per unit is $23.99. Poseidon Swim has average fixed costs per year of $9,452. Assume that current level of sales is 47..

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