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    Practical Financial Management Study Set 1
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    Exam 14: Capital Structure and Leverage
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    If a Company Sells 20,000 Units at $20 Each, Has
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If a Company Sells 20,000 Units at $20 Each, Has

Question 148

Question 148

Multiple Choice

If a company sells 20,000 units at $20 each, has fixed costs of $50,000 and a variable cost of $10 per unit, what is their degree of operating leverage (DOL) ?


A) 1.6
B) 2.5
C) 1.33
D) 1.7

Correct Answer:

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