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Calculate the degree of operating leverage front

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The Poseidon Company produces swim trunks. The average selling price for one of their swim trunks is $65.14. The variable cost per unit is $19.51, Poseidon Swim has average fixed costs per year of $6,954.

Assume that current level of sales is 361 units. What wil be the resulting percentage change in EBIT if they expect units sold to changes by 3.5 percent?

(One should calculate the degree of operating leverage front).

Round the answer to two decimal places.

Reference no: EM132503769

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