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Could someone help finish the rest of the question? I need to figure out part C, D, and E. Degree of operating leverage Grey Products
Could someone help finish the rest of the question? I need to figure out part C, D, and E.
Degree of operating leverage Grey Products has fixed operating costs of $383,000, variable operating costs of $16.12 per unit, and a selling price of $64.12 per unit. a. Calculate the operating breakeven point in units. b. Calculate the firm's EBIT at 11,000, 13,000, and 15,000 units, respectively. c. With 13,000 units as a base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part (b)? d. Use the percentages computed in part (c) to determine the degree of operating leverage (DOL). e. Use the formula for degree of operating leverage to determine the DOL at 13,000 units. a. The operating breakeven point is 7979 units. (Round to the nearest integer.) b. The EBIT for the 11,000 units level is $ 145000. (Round to the nearest dollar.) The EBIT for the 13,000 units level is $ 241000. (Round to the nearest dollar.) The EBIT for the 15,000 units level is $ 337000. (Round to the nearest dollar.) c. With 13,000 units as a base, the change in sales as a percentage for the 11,000 units level is %. (Round to one decimal place.)Step by Step Solution
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