Harmony sells a product for $60 per unit. Variable costs per unit are $36, and monthly...
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Harmony sells a product for $60 per unit. Variable costs per unit are $36, and monthly fixed costs are $146,400. a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to earn a target profit of $184,800? Total Required Sales units 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.) Degree of Operating Leverage d. If sales increase by 40% from that level, by what percentage will profits increase? (Round final answers to two decimal places.) Change in Profit % Harmony sells a product for $60 per unit. Variable costs per unit are $36, and monthly fixed costs are $146,400. a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to earn a target profit of $184,800? Total Required Sales units 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.) Degree of Operating Leverage d. If sales increase by 40% from that level, by what percentage will profits increase? (Round final answers to two decimal places.) Change in Profit %
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Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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