A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $480,375. The first year’s sales estimates are...


A new restaurant is ready to open for business. It is estimated that the food cost (variable cost) will be 40% of sales, while fixed cost will be $480,375. The first year’s sales estimates are $1,250,000. Calculate the firm’s degree of operating leverage (DOL).



Jun 06, 2022
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