Small Fry Company has sales of $1,250,000, variable costs of $650,000, and fixed costs of $480,000.

Reference: Ref 6-4

Small Fry's degree of operating leverage is

Answer

	A.	1.08.
	B.	1.25.
	C.	5.00.
	D.	1.35.

Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $180,000. What is Boswell break-even point in units?

	A.	16,364.
	B.	25,556.
	C.	20,000.
	D.	28,125.