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Determine the company degree of operating leverage

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Question - Thomas Clapp Inc., a clothing manufacturer, headquartered in Latin America, end of year sales amount to 16,200 units, with a selling price of 42.00 per unit. Variable manufacturing cost per unit is calculated to be $20.60, with variable selling and administration $22,680. The fixed selling and administration amount to 49200 and the fixed manufacturing overhead total 210,000. Both FMOH and FS&A are within the relevant range. Determine the company's degree of operating leverage.

Reference no: EM133143665

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