Answer to Question #327846 in Macroeconomics for Hes

Question

5. The ABC Company sells widgets at $9 each; variable unit cost is $6, and fixed cost is $60,000

per year.

a. What is the break-even quantity point?

b. How many units must the company sell per year to achieve a profit of $15,000?

c. What will be the degree of operating leverage at the quantity sold in part a? In part b?

d. What will be the degree of operating leverage if 30,000 units are sold per year

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order