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ehidna [41]
2 years ago
14

RST Company produces a product that has a selling price of $10 per unit and variable cost of $6 per unit. The company's fixed co

sts are $30,000. If the company sells 15,000 units, the degree of operating leverage is
Business
1 answer:
Ne4ueva [31]2 years ago
4 0

The e degree of operating leverage of RST Company given its price, costs and quantiy sold is 2.

<h3>What is the degree of operating leverage?</h3>

The degree of operating leverage (DOL) measures the sensitivity of a company's operating income to changes in the demand.

DOL = [Q(P - V) ] /[ Q(P - V) - F]

  • Q = quantity
  • P = price
  • V = variable cost
  • F = fixed cost

[15000(10 - 6)] / [15000(10 - 6) - $30,000]

60,000 / 30,000 = 2

To learn more about the degree of operating leverage, please check: brainly.com/question/23684386

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