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Major League Corporation produces one product, expected sales are 4,000 units. Total fixed costs are $40,000. The unit selling price is $60.00 and the unit
Major League Corporation produces one product, expected sales are 4,000 units. Total fixed costs are $40,000. The unit selling price is $60.00 and the unit variable cost is $35.00. A) Compute the contribution margin per unit: BCompute the operating Income C) Compute the break-even point in units and in sales dollars. D) What is the Degree of Operating Leverage (DOL=CM/Ol) E) If sales increase from expected by 15%, what is the expected increase in operating income? (DOL x 20% Ol)
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