GOES WITH QUESTIONS 5-7

Use the following to answer questions 4 through 7 : Pumbaa Inc. sells a single product. Pumbaa's income statement for the most recent year is presented below. Pumbaa's annual breakeven point in units sold is: 3,000 units 5,231 units 1,000 units 4,000 units Pumbaa's degree of operating leverage is: 5 4 6 3 If Pumbaa's sales double to $240,000, annual variable expenses will equal: $107,000 $78,000 $68,000 $136,000