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3. A company that makes organic fertilizer has supplied the following data: Bags produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable
3. A company that makes organic fertilizer has supplied the following data: Bags produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income 240,000 $1,896,000 $804,000 $520,000 $180,000 $270,000 $122,000 The company's degree of operating leverage is closest to: A. 1.97 B. 15.54 C. 1.25 D. 7.48 4. The Catherine Corporation manufactures and sells two types of bookcases, standard and deluxe. Catherine expects the following operating results next year for each type of bookcase: Sales Variable expenses (total) Standard $450,000 $180,000 Deluxe $50,000 $20,000 Catherine expects to have a total of $57,600 in fixed expenses next year. What is Catherine's break-even point next year in sales dollars? A. $72,000 B. $144,000 C. $96,000 D. $240,000
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