Question: Operating Leverage: *Hutcheon Tool & Dye's current business model supports the following set of data: Fixed costs = $255,000; variable costs = $22; selling

Operating Leverage: *Hutcheon Tool & Dye's current business model supports the following set of data: Fixed costs = $255,000; variable costs = $22; selling price per unit = $33.50; and quantity sold = 71,250 units. What is the Degree of Operating Leverage at this level of output, and what happens to the Degree of Operating Leverage if 66,750 units are sold instead?

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