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Consider the following financial information for Spruce's Donuts Per Unit Price Total Sales (400 units) $ 250 $ 100,000 Variable Expenses $ 150 $ 60,000
Consider the following financial information for Spruce's Donuts Per Unit Price Total Sales (400 units) $ 250 $ 100,000 Variable Expenses $ 150 $ 60,000 Contribution Margin $ 100 $ 40,000 Required: 1. With a margin of safety percentage of 12.5%, what are the Fixed Expenses? 2. Assume Fixed Expense of $20,000, calculate the Degree of Operating Leverage
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