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Model A Model B Sales Price 100 100 Variable cost/unit 40 60 Fixed cost 20,000 10,000 1. Which model in terms of operating income is

Model A Model B

Sales Price 100 100

Variable cost/unit 40 60

Fixed cost 20,000 10,000

1. Which model in terms of operating income is better for business at 150 sales of units? 2. Calculate the degree of operating leverage at each of the above sales intervals for both business models.

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	Model A	Model B
Sales Price	100	100
Variable cost/unit	40	60
Fixed cost	20,000	10,000

Question

Model A Model B Sales Price 100 100 Variable cost/unit 40 60 Fixed cost 20,000 10,000 1. Which model in terms of operating income is

Model A Model B Sales Price 100 100 Variable cost/unit 40 60 Fixed cost 20,000 10,000 1. Which model in terms of operating income is better for business at 150 sales of units? 2. Calculate the degree of operating leverage at each of the above sales intervals for both business models.

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Model A Model B

Sales Price 100 100

Variable cost/unit 40 60

Fixed cost 20,000 10,000

1. Which model in terms of operating income is better for business at 150 sales of units? 2. Calculate the degree of operating leverage at each of the above sales intervals for both business models.