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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
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.
(a) Calculate the firm's operating breakeven point in units.
(b) Calculate the firm's operating breakeven point in dollars.
(c) Using 110,000 units as a base, what is the firm's degree of operating leverage?
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