1) The Nestle Malaysia Bhd. produces several types of Juices for consuming. The average selling price for one of their rods is RM132. The variable cost per unit is RM80. Basic Sports has average fixed costs per year of RM90,000. Determine the degree of operating leverage for the two levels of production and sales given in part (1) 2,000 rods, and (2) 10,000 rods? *

8.43%, 1.31%

7.43%, 1.21%

6.43%, 1.21%

8.43%, 1.11%

2)The Basic Sports Company produces graphite surf-casting fishing rods. The average selling price for one of their rods is $132. The variable cost per unit is $80. Basic Sports has average fixed costs per year of $90,000. What is the break-even point in units for Basic Sports? *

$ 1,731

No Answer

$1831

$-1831