Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data:
Assume that Staley Co. is currently selling 600 computer monitors per month and monthly fixed costs are $80,000.
What is Staley Co.'s degree of operating leverage (DOL) at this sales volume (i.e., at 600 units) ? (Round your answer to three decimal places.)
A) 5.118.
B) 4.405.
C) 5.630.
D) 5.000.
E) 4.846.
Correct Answer:
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