Clockworks Co Required:
(A) Calculate Clockworks' Pretax Income

Essay

Clockworks Co. reports the following data for the current year: $\begin{array} { l r } \text { Units Sold } & 1,200 \\\text { Unit Sales Price } & \$ 30 \\\text { Unit Variable Cost } & \$ 10 \\\text { Total Fixed Cost } & \$ 18,000\end{array}$
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.