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Lets assume, instead, that the roommate thing doesnt work out. Edward now wants to consider...

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Accounting

Lets assume, instead, that the roommate thing doesnt work out. Edward now wants to consider other ways to increase his profit in this business.
(c1) If he increases his selling price by 20% and maintains the same volume of four units per month, does it affect his DOL? (Round answer to 2 decimal places, e.g.15.25.)
Effect on DOL enter the effect on degree of operating leverage rounded to 2 decimal places
1.36
Incorrect answerselect an option
Decrease
Correct answer
(c2) If so, what does this changed DOL mean for Edward?
Operating income select an effect
will not be affected
by a change in sales.

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