Question
Some financial data for each of the three firms are as follows: Jakes Lawn Chairs Sarasota Sky Lights Jefferson Wholesale Average selling price per unit
Some financial data for each of the three firms are as follows:
|
| Jakes Lawn Chairs | Sarasota Sky Lights | Jefferson Wholesale |
| Average selling price per unit | $32.00 | $875.00 | $97.77 |
| Average variable cost per unit | $17.38 | $400.00 | $87.00 |
| Units sold | 18,770 | 2,800 | 11,000 |
| Fixed costs | $120,350 | $850,000 | $89,500 |
a. What is the profit for each company at the indicated sales volume?
b. What is the break-even point in units for each company?
c. What is the degree of operating leverage for each company at the indicated sales volume?
d. If sales were to decline, which firm would suffer the largest relative decline in profitability?
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
