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Juniper Enterprises sells handmade clocks. Its variable cost per clock is $14.50, and each clock sells for $29.00. The company's fixed costs total $12,035. How
Juniper Enterprises sells handmade clocks. Its variable cost per clock is $14.50, and each clock sells for $29.00. The company's fixed costs total $12,035. How many units must Juniper sell to earn a profit of at least $6,815? Sales Units Westerwheat, Inc. has provided the following cost information. WESTERWHEAT Contribution Margin Income Statement 150,000 units sold Total Per Unit Sales revenue $1,950,000 $13.00 Less: Variable costs 1,200,000 8.00 Contribution margin S 750,000 S 5.00 Less: Fixed costs 350,000 S Net operating income 400,000 Percent 100% 623 38% Knowledge Check 01 What is Westerwheat's degree of operating leverage? 2.143 4.875 1.875 O 3.000 Knowledge Check 02 A 20 percent increase in sales revenue will increase net operating income by 42.86% 97.50% 60.00% 37.50% Knowledge Check 03 Decreasing fixed costs by $100,000 will Decrease the degree of operating leverage by 0.375 O Increase the degree of operating leverage by 0.857 O Decrease the degree of operating leverage by 0.975 Decrease the degree of operating leverage by 0.600
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