Question
Q3 XYZ Corporation sells its product for $17 per unit. Its variable cost is $10 per unit, and total fixed costs are $800. Assuming next
Q3 XYZ Corporation sells its product for $17 per unit. Its variable cost is $10 per unit, and total fixed costs are $800. Assuming next periods estimated sales are 300, calculate the following amounts:
a. Degree of operating leverage
b. Margin of safety in units
c. Margin of safety in revenues
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Financial Modeling
Authors: Simon Benninga
3rd Edition
0262026287, 9780262026284
