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What is Staley Co degree of operating leverage

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Question - Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:

 

Per Unit

Percent

Sales price

$450

100.00

Variable costs

232

51.56

Unit contribution margin

$218

48.44

Assume that Staley Co. is currently selling 580 computer monitors per month and monthly fixed costs are $79,600.

Required - What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 580 units)?

Reference no: EM132854248

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What is Staley Co degree of operating leverage : Assume that Staley Co. is currently selling 580 computer monitors per month and monthly fixed costs are $79,600. What is Staley Co degree of operating leverage
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