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Question 2 (6 points) Sambo manufacturing sells its finished product for an average of $45 per unit with a variable cost per unit of $32.
Question 2 (6 points)
Sambo manufacturing sells its finished product for an average of $45 per unit with a variable cost per unit of $32. The company has fixed operating costs of $910,000.
- Calculate the firm's operating breakeven point in units.
- Calculate the firm's operating breakeven point in dollars.
- Using 110,000 units as a base, what is the firm's degree of operating leverage?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
