Question
QV Sportings, Ltd. manufactures athletic equipment. The data related to the production of their product is as follows: Fixed Costs: $111,738 Variable Cost: $36 per
QV Sportings, Ltd. manufactures athletic equipment. The data related to the production of their product is as follows: Fixed Costs: $111,738 Variable Cost: $36 per unit Selling Price: $42 per unit Plant Capacity: 90,000 units
a) Find the degree of operating leverage (DOL) at 30,000 units using the data above.
b) Find the break-even point in units.
c) Determine the number of units required to generate a profit of $7,440 and express your result as a percent of plant capacity.
d) State the contribution margin per unit.
e) Determine the profit at a sales revenue of $840,000.
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