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Problem 6-122 (Algo) (LO 6-1, 6-2, 6-5) Harmony sells a product for $90 per unit. Variable costs per unit are $32, and monthly fixed costs
Problem 6-122 (Algo) (LO 6-1, 6-2, 6-5) Harmony sells a product for $90 per unit. Variable costs per unit are $32, and monthly fixed costs are $423,400 a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to earn a target profit of $429,200? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 2 decimal place.) Degree of Operating Leverage d. If sales increase by 40% from that level, by what percentage will profits increase? (Round final answers to two decimal places.) Change in Profit %
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