Degree of Operating Leverage
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Based on the following information, what is the Degree of Operating Leverage of Brennan Co.?
Revenue EBIT
Last Year 10,000 3,000
This Year 11,000 3,600
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Word file contains calculations of Degree of Operating Leverage is provided. The revenues EBIT is analyzed.
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Please see the response to your posting as below:
Assumption price per unit and variable cost per unit is same for last year and this year.
Revenue EBIT Total cost (Revenue -EBIT)
Last Year 10,000 3,000 7000
This Year 11,000 3,600 7400
Let price per unit be X
Units sold in the ...
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