Question
PLEASE HELP 13. Zeta Company sells men's sports coats. The average sales price is $475 the average cost per coat is $225. Fixed costs are
PLEASE HELP 13. Zeta Company sells men's sports coats. The average sales price is $475 the average cost per coat is $225. Fixed costs are $4,220,000. If Zeta sells 25,000 coats, the contribution margin will be: a. $7,655,000. b. $5,625,000. C. $2,030,000. d $6.250.000.
14. Rita Company sells waste containers. The price and cost of the containers is $75 and $40, respectively. Fixed costs are $210,000. Rita sells approximate 8,000 containers per year. Based on this information, the magnitude of operating leverage is: a.3 times. b.4 times. C.5 times. d. 6 times. 15. Blanchett Stapler Company sells staplers at a price of $7 each. The staplers cost $4 each. Blanchett sold 10,000 staplers during its most recent accounting period. Fixed costs amounted to $20,000. If the number of units sold increases by 10%, profitability will increase by which of the following amounts? a. 10% B. 20% c. 30% d. 40%
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