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Explain what will be the resulting percentage change in ebit

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The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $71.57. The variable cost per unit is $23.92, Poseidon Swim has average fixed costs per year of $5,885.

Question 1: Assume that current level of sales is 451 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -2.2 percent? (Yoy should calculate the degree of operating leverage first). Round the answer to two decimal places.

Reference no: EM132569572

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