Question
The Quarles Distributing Company manufactures an assortment of cold air intake systems for high- performance engines. The average selling price for the various units if
The Quarles Distributing Company manufactures an assortment of cold air intake systems for high- performance engines. The average selling price for the various units if $500. The associated variable cost is $350 per unit. Fixed Costs for the firm average $190,000 annually.
A) what is the break even point in units for the company ?
____ Units ( Round to the nearest whole numbe)
B) What is the dollar sales volume the firm must achieve to reach the break even point?
$____( Round to the nearest cent)
C) What is the degree of operating leverage for a production and sales level of 3,000 units for the firm?
____ ( Round to three decimal places)
D) What will be the projected percentage change in earnings before interest and taxes if the firm's sales level should increase by 45 percent from the volume noted in part C?
___% ( Round to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started