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Open Question 1 Ctd. Jennings Corp. produces three different sorts of volleyballs: Indoor Star (1), Beach Star (B) and Volley Pro (V). The capacity constraint

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Open Question 1 Ctd. Jennings Corp. produces three different sorts of volleyballs: Indoor Star (1), Beach Star (B) and Volley Pro (V). The capacity constraint on machine hours is 500 hours per day. Information about the different volleyballs is provided below. All fixed costs are allocated based on machine hours. B V Selling price (130 E90 E140 Vadiable costs (per ball) E40 C40 E64 Fixed costs (per ball) E16 C8 E16 Machine hours required to 4h 2h 4h produce one ball Demand per day (ball) 50 units 60 units 70 units b) Calculate the degree of operating leverage of Jennings Corp. assuming that the optimal production schedule is applied throughout the entire year and that there are no additional fixed costs. [Note: If you have no results for the optimal production schedule under subquestion a) then calculate the operating leverage assuming that only volleyball I is produced]. (4 points) BIYE(() / Formats

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