Modern Artifacts can produce keepsakes that will be sold for $110 each. Nondepreciation fixed costs are $1,300
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Modern Artifacts can produce keepsakes that will be sold for $110 each. Nondepreciation fixed costs are $1,300 per year, and variable costs are $70 per unit. The initial investment of $3,900 will be depreciated straight-line over its useful life of 5 years to a final value of zero, and the discount rate is 10%.
What is the degree of operating leverage of Modern Artifacts when sales are $6,050?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What is the degree of operating leverage when sales are $11,000?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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