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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 $75.85. The variable cost per unit is $25.23, Poseidon Swim has an average fixed cost per year of $9,017.

Assume that the current level of sales is 500 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -2.5 percent. You should calculate the degree of operating leverage first

Round the answer to two decimal places.

Reference no: EM132504216

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