Essay
Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per unit of $21. The company has fixed operating costs of $1,050,000.
(a) Calculate the firm's operating breakeven point in units.
(b) Calculate the firm's operating breakeven point in dollars.
(c) Using 100,000 units as a base, what is the firm's degree of operating leverage?
Correct Answer:
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(a) Q = 
= = 75,000 units
(b)...View Answer
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Correct Answer:
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= = 75,000 units(b)...
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