Question: Harmony sells a product for $110 per unit. Variable costs per unit are $50, and monthly fixed costs are $390,000. a. What is the break-even
Harmony sells a product for $110 per unit. Variable costs per unit are $50, and monthly fixed costs are $390,000. a. What is the break-even point in units?
b. What unit sales would be required to earn a target profit of $444,000?
c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 2 decimal place.)
d. If sales increase by 40% from that level, by what percentage will profits increase? (Round final answers to two decimal places.)
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