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How to solve Jitterbug Incorporated: Upcoming year projections Sales Revenue: 4 0 , 0 0 0 units sold $ 8 0 0 , 0 0

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Jitterbug Incorporated: Upcoming year projections
Sales Revenue: 40,000 units sold
$800,000
Per Unit
Less: Variable Expenses
-640,000??
-16?
Contribution Margin
160,000
$4
Less: Fixed Expenses
-80,000??
Net Operating Income
$80,000?
3. Does the company have a good cost structure ir sales should exceed its projections by 10%? Explain.
Yes, because its degree of operating leverage is fairly low.
Yes, because its degree of operating leverage is fairly high.
No, because its degree of operating leverage is fairly high.
No, because its degree of operating leverage is fairly low.
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