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Unit Sales and Degree of Operating Leverage

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Caneer Corp. produces and sells a single product.
Selling price per unit..........$240.00
Variable expense per unit....... $81.60
Fixed expense per month.........$997,920

The UNIT sales to attain the company's monthly target profit of $44,000 is closest to:
A) 7,896
B) 12,769
C) 6,578
D) 4,341

Serfass Corp's contribution format income statement for July:
Sales..................$260,000
Variable expenses...... 176,000
Contribution margin.... 84,000
Fixed expenses......... 71,800
Net operating income... $12,200

The DEGREE OF OPERATING LEVERAGE is closest to:
A) 0.05
B) 0.15
C) 21.31
D) 6.89

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This solution provides calculations for unit sales and degree of operating leverage.

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Caneer Corp. produces and sells a single product.
Selling price per unit..........$240.00
Variable expense per unit....... $81.60
Fixed expense per month.........$997,920

The UNIT sales to attain the ...

Purchase this Solution


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