Centex, a Producer of Telephone Systems for Small Businesses, Has

Multiple Choice

Centex, a producer of telephone systems for small businesses, has current sales of$43 million and variable operating costs of$27.95 million.Centex expects to increase sales in the coming year by 15% while keeping fixed operating costs constant at $9.1 million.What is the DOL for Centex?

A) 3.3
B) 7.2
C) 1.0
D) 2.5