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Problem 2 - Farmington Corporation manufactures toaster ovens, generally selling from 20,000 to 30,000 units per year. The following cost data apply to the activity
Problem 2 - Farmington Corporation manufactures toaster ovens, generally selling from 20,000 to 30,000 units per year. The following cost data apply to the activity levels shown: 20,000 25,000 30,000 Number of Units Total costs Fixed Variable Total costs $300,000 200,000 $500,000 Cost per Unit Fixed Variable Total cost per unit $15.00 10.00 $25.00 Required: 1.) Complete the preceding table by filling the missing amounts for 25,000 and 30,000 units. 2.) If Farmington sells each unit for $35, what is their magnitude of operating leverage at sales of 25,000 units
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