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Eevee, Inc. manufactures egg incubators. For the month ended October 31, Eevee reported sales of 25,000 units; variable cost per unit of $60; and a
Eevee, Inc. manufactures egg incubators. For the month ended October 31, Eevee reported sales of 25,000 units; variable cost per unit of $60; and a contribution margin ratio of 25%. Eevee's degree of operating leverage for the month of October was 2.5 and for the year ended December 31, was 4. Assuming no change during the year of sale price per unit, variable cost per unit and total fixed costs, Eevee's operating income for the month of October was:
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