Junior Bodway, Inc., has provided the following budgeted data:
|
Sales |
10,000 units |
|
Selling price |
$50 per unit |
|
Variable expense |
$30 per unit |
|
Fixed expense |
$180,000 |
|
Sales |
10,000 units |
|
Selling price |
$50 per unit |
|
Variable expense |
$30 per unit |
At the budgeted sales level of 10,000 units, what is the company”s degree of operating leverage?
A) 10.0
B) 6.0
C) 22.5
D) 5.0