Question: If fixed costs rise while other variables stay constant Select one: A. the breakeven point rises. B. degree of operating leverage increases. O C. total


If fixed costs rise while other variables stay constant Select one: A. the breakeven point rises. B. degree of operating leverage increases. O C. total profit declines O D. all of the above East End Industries produces parts selling for $16.00. Variable costs arre $12.00 per part. The company's projected fixed costs are $100,000. If East End Industries has a target income of $500,000, how many units must it sell to reach its target income? Select one: O A. 68,750 units O B. 150,000 units OC. 275,000 units OD. None of these answers is correct The following information relates to MSF Corporation: Sales revenue = $500,000 (10,000 units @ $50/unit) Variable costs of operations = $200,000 (10,000 units @ $20/unit) Contribution margin = $300,000 Fixed costs of operation = $240,000 Operating income (EBIT) = $600,000 Interest expense = $50,000 Earnings before taxes (EBT) = $10,000 What is MSF Corporation's degree of operating leverage (DOL)? Select one: O A 5.0 OB 2.0 O C. 3.0 O D. 4.0 A firm that has no debt has: 1. A degree of operating leverage of one II. A degree of financial leverage of zero III. A degree of combined leverage of one Select one: O A. I only OB. I and II only O C. I and III only O D. I, II, and
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