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The Poseidon Swim Company produces swim trunks

Finance

The Poseidon Swim Company produces swim trunks. The average selling price for one of their swim trunks is $89.82. The variable cost per unit is $19.21, Poseidon Swim has average fixed costs per year of $6,091.

 

Assume that current level of sales is 304 units. What will be the resulting percentage change in EBIT if they expect units sold to changes by -5.0 percent? (You should calculate the degree of operating leverage first).

 

(Write the percentage sign in the "units" box).

 

Round the answer to two decimal places in percentage form.

 

 

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