Question
(A) An analyst gathered the following information regarding Alpha Inc.: Number of units sold = 1,000 Sales price per unit = $20 Variable cost per
(A) An analyst gathered the following information regarding Alpha Inc.: Number of units sold = 1,000 Sales price per unit = $20 Variable cost per unit = $15 Degree of operating leverage = 1.25 Degree of financial leverage = 2.00 The operating breakeven number of units is closest to:
A. 200
B. 350
C. 500
(B) An analyst gathered the following information regarding Alpha Inc.:
Number of units sold = 1,000
Sales price per unit = $20
Variable cost per unit = $15
Degree of operating leverage = 1.25
Degree of financial leverage = 2.00
The operating breakeven number of units is closest to:
A. 200
B. 350
C. 500
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