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10 Sony company is planning to produce a new PlayStation that would sell at a price of $300. The 3. production of each PlayStation would
10 Sony company is planning to produce a new PlayStation that would sell at a price of $300. The 3. production of each PlayStation would require $100 in materials, 3.75 hours of labor at the rate of $20 per hour for wages to labor, and other variable costs equ al to $50 per unit. The fixed cost is estimated to be $25 per PlayStation (at a projected volume of 14,000 units) A. What is Sony's breakeven sales volume (in units) for PlayStations? (1 mark) B. Calculate the degree of operating leverage at the projected volume of 14,000 units. Explain what the obtained DOL means.(1 mark)
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