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3. Hart Company sold 5,000 units last period for a price of $50 per unit and had the following additional information from last period: Total

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3. Hart Company sold 5,000 units last period for a price of $50 per unit and had the following additional information from last period: Total variable costs reak-even point Total Fixed costs $160,000 $347.222 $125,000 Hart's operating income (loss) for last period was closest to: A) $90,000 B) $35,000 C) ($35,000) D) ($90,000) E) ($125,000) 6. Cleaning Care Inc. expected to sell 10,000 mops. Fixed costs were $10,000, unit sales price was $12, and unit variable costs were $7. Cleaning Care's degree of operating leverage is expected to be A) 0.80 times. B) 1.60 times. C) 1.25 times. D) 2.25 times. E) 3.00 times. 7. If unit sales price and total fixed costs remain the same, what will happen to break-even point if variable costs per unit decrease and sales volume increases? A) Break-even point will decrease. B) Break-even point will stay the same. C) Break-even point will increase. D) Break-even point will increase in direct proportion to the sales volume increase. E) Not enough information to tell what would happen to break-even point

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