Essay
Clockworks Co. reports the following data for the current year:
Units sold………………………………………… 1,200
Unit sales price…………………………………… $30
Unit variable cost………………………………… $10
Total fixed cost…………………………………… $18,000
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.
Correct Answer:
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(a)
Sales (1,200 units ∗ $30 each)………………...View Answer
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Correct Answer:
Verified
Sales (1,200 units ∗ $30 each)………………...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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