A product sells for $220 per unit, and its variable costs per unit are $146. The

Q: A product sells for $220 per unit, and its variable costs per unit are $146. The

( 424000 + 59960 ) / ( 220 - 146 ) = 6540 contribution margin = 360 - 262.8 = 97.2 contribution margin ratio is 97.2 * 100 / 360 = 27% Operating leverage of 5 measures the degree of debt employed by the firm's debt structure.

ID: 2375441 • Letter: A

Question

A product sells for $220 per unit, and its variable costs per unit are $146. The fixed costs are $424,000. If the firm wants to earn $59,960 pretax income, how many units must be sold

Psi Company is designing a new line of shoes called the Kappa. The shoes will sell for $360 per pair and cost $262.80 per pair in variable costs to make.

Compute the contribution margin per pair. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Which of the following is the correct interpretation of a degree of operating leverage of 5?

6,940. 6,740. 6,640. 6,540. 6,840.

Explanation / Answer

( 424000 + 59960 ) / ( 220 - 146 ) = 6540

contribution margin = 360 - 262.8 = 97.2

contribution margin ratio is 97.2 * 100 / 360 = 27%

Operating leverage of 5 measures the degree of debt employed by the firm's debt structure.

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A product sells for $195, variable costs are $160, and fixed costs are $116,000.

A product sells for $255 per unit, and its variable costs per unit are $153. The

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A product sells for $220 per unit, and its variable costs per unit are $146. The

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