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The Funky Ties Company sells novelty neckties for men.They have variable costs per tie of $5.00 and fixed costs of $26,000 per year.Funky sells the
The Funky Ties Company sells novelty neckties for men.They have variable costs per tie of $5.00 and fixed costs of $26,000 per year.Funky sells the ties for $21 each and sells 3,000 ties per year. Answer the following questions:
- Calculate Funky's breakeven point in unit sales.
- Calculate the degree of operating leverage,
- If Funky has financed partially with debt and has annual interest cost of $1,000, what is its degree of financial leverage?
- Calculate the degree of total leverage,
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