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dont use excel thereafter. Calculate the cost of common stock for Dunkin' Donuts. 7. Melbourne Meat Pies (MMP) is going to produce frozen meat pies
dont use excel
thereafter. Calculate the cost of common stock for Dunkin' Donuts. 7. Melbourne Meat Pies (MMP) is going to produce frozen meat pies at a variable cost of $3 per pie. MMP sells its pies at a price of $7 per pie. The fixed costs associated with the production are $180K. The assembly line that makes these pies requires an initial investment of $200K; this assembly line will be depreciated over 4 years. (a) Ignore taxes, and calculate the degree of operating leverage (DOL) at an output level (i.c., at a quanti- ty) of 50K pies. (b) Still ignoring taxes, calculate DOL at an output level of 60K pies. (e) Ignoring taxes, calcu- late DOL at these three output levels: 70K pies, 90K pies, and 120K pies (d) Side question: If a firm's fixed Step by Step Solution
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