Cobra Co. sells office stationery for $8.00 per package. The paper's variable cost per package is...

 

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Cobra Co. sells office stationery for $8.00 per package. The paper's variable cost per package is $6.50. Cobra has fixed operating costs of $3,000 and fixed financing (interest) costs of $2,000. On average, Cobra sells 10,000 units. What is Cobra's degree of operating leverage (DOL)? Cobra Co. sells office stationery for $8.00 per package. The paper's variable cost per package is $6.50. Cobra has fixed operating costs of $3,000 and fixed financing (interest) costs of $2,000. On average, Cobra sells 10,000 units. What is Cobra's degree of operating leverage (DOL)?

Answer rating: 100% (QA)

To calculate Cobras degree of operating leverage DOL we need to use the following formula DOL Contri... View the full answer