Trident Food Corporation generated the following income statement for the most recent fiscal year: ? Sales revenues                                    $150,000 Variable cost of sales                          (120,000) Gross profit                                            30,000 Fixed operating costs                           (10,000) Net operating income (EBIT)             $20,000 ? What is the degree of operating leverage (DOL) for Trident Food?

A. 1.5×
B. 7.5×
C. 5.0×
D. 1.4×
E. 2.5×


Answer: A

Mathematics

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A. - 
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C.
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