$6(1)$

$1$

M$6-13($Algo$)$ Calculating Degree of Operating Leverage $[$LO $6-5]$

Heather Hudson makes stuffed teddy bears. Recent information for her business follows:

Selling price per bear

Total fixed costs per month

$$33\mathrm{.}50$

$1,430\mathrm{.}00$

$18\mathrm{.}50$

$03$:$45$:$24$

Variable cost per bear

$.18\mathrm{.}50$

Required:

Determine the degree of operating leverage if she sells $360$ bears this month.

Note: Round your answer to $2$ decimal places.

Degree of operating leverage

References