Porter Productions sells video tapes for $15.00 each. Their variable cost per unit is $9.00. In addition, they incur $180,000 in fixed costs each year. At 40,000 units of sale, what is Porter's degree of operating leverage (DOL)?
A)1.33
B)2.50
C)3.00
D)4.00
E)6.00

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The Answer of Porter Productions sells video tapes for $15.00 each. Their variable cost per unit is $9.00. In addition, they incur $180,000 in fixed costs each year. At 40,000 units of sale, what is Porter's degree of operating leverage (DOL)?
A)1.33
B)2.50
C)3.00
D)4.00
E)6.00

Porter Productions Sells Video Tapes for $15