What will be the resulting percentage change in ebit

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Reference no: EM132046973

Question: The Poseidon Swin Company produces swim trunk. The average selling price for one of their swim trunks is $65.25.The variable cost per unit $21.23. Poseidon Swin has an average fixed cost per year of $5,677.

Assume that current level of sales is 381 units, What will be the resulting percentage change in EBIT if they expect units sold to changes by -18 percent? You should calculate the degree of operating leverage first)

Round answer to two decimal places in percentage form.

Reference no: EM132046973

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