Based on the Example in the Textbook, the Calculation Below $\frac{\text {Percent change in operating income }}{\text {Percent change in unit volume }}$

question 78

True/False

Based on the example in the textbook, the calculation below is of a conservative firm.
DOL = $\frac{\text {Percent change in operating income }}{\text {Percent change in unit volume }}$ = $\frac { \frac { \$ 24,000 } { \$ 36,000 } \times 100 } { \frac { 20,000 } { 80,000 } \times 100 }$ = $\frac { 67 \% } { 25 \% }$ = 2.7

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