Question: Clockworks Co. reports the following data for the current year: Units sold 1,200 Unit sales price $30 Unit variable cost $10 Total fixed cost $18,000

Clockworks Co. reports the following data for the current year:

Units sold 1,200

Unit sales price $30

Unit variable cost $10

Total fixed cost $18,000

Required:

  1. Calculate Clockworks' pretax income. (5 Points)

(b) Calculate Clockworks' degree of operating leverage.(2 Points).

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