Question: ABCCompany sells pillows for $90 per unit. The variable expenses are $63 per pillow and the fixed costs are $135,000 per month. The company sells
ABCCompany sells pillows for $90 per unit. The variable expenses are $63 per pillow and the froed costs are $135,000 per month. The company sells 8,000 pillows per month. The current degree of operating leverage is: (enter your response rounded to two decimals) Management expected sales to increase 10% if variable costs decreased $10 per unit and increasing fored costs by $109,600, Calculate the new degree of operating leverage (enter your response rounded to two decimals) Which produces a better degree of operating leverage? 2. 0/1 sinint If a firm has a contribution margin of $53,301 and a net income of $12,000 for the current month, what is their degree of operating leverage? Enter your response rounded to one decimal (i.e., 1.5)
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