Question
A firm sells widgets and has $1,000,000 in fixed costs. The firm anticipates selling each widget for $25 with variable costs of $5 per widget.
A firm sells widgets and has $1,000,000 in fixed costs. The firm anticipates selling each widget for $25 with variable costs of $5 per widget. The operating leverage at 400,000 widgets sold is closest to:
| a. | 3.33 | |
| b. | 1.25 | |
| c. | 1.14 | |
| d. | There is insufficient information provided to calculate the operating leverage |
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Technical Analysis Of The Financial Markets
Authors: John J. Murphy
1st Edition
0735200661, 978-0735200661
