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Find what will be the resulting percentage change in ebit

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The Poseidon Swim Company produuces swim trunks. The average selling price for one of their swim trunks is $77.87. The variable cost per unit is $18.85, Poseidon Swim has average fixed costs per year of $5,620.

Question 1: Assume that current level of sales is 331 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -4.2 percent? (You should calculate the degree of operating leverage first). Round the answer to two decimal places (in percentage form)

Reference no: EM132563946

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