Calculate the degree of operating leverage first

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New Balance produces swimming trunks. The average selling price of one of the company's swimming trunks is $88.66. The variable cost per unit is $18.21, and New Balance has average fixed costs per year of $7164. Assume that the current level of sales is 454 units. What is the resulting percentage change in EBIT if the company expects units sold to change by 1.7 percent? (Calculate the degree of operating leverage first.) Round the answer to two decimal places.

Reference no: EM131178708

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Calculate the degree of operating leverage first : New Balance produces swimming trunks. The average selling price of one of the company's swimming trunks is $88.66. The variable cost per unit is $18.21, and New Balance has average fixed costs per year of $7164. What is the resulting percentage chang..

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