If a Company Sells 20,000 Units at $20 Each, Has

question 148

Multiple Choice

If a company sells 20,000 units at $20 each, has fixed costs of $50,000 and a variable cost of $10 per unit, what is their degree of operating leverage (DOL) ?

• A)1.6
• B)2.5
• C)1.33
• D)1.7