Problem:
Deci-Bell, Inc. is producing new headphones, but first management wants to determine its degree of operating leverage. Deci-Bell Inc. has a base level of sales of 325,784 units. Sales price per unit is $151.98 and variable cost per unit is $ $69.78. Total annual operating fixed costs are $5,396,999.
Required:
Question: Calculate Deci-Bell's degree of operating leverage. Round the answer to two decimal places
Explain comprehensively and show all calculation.