Question: Movers sells utility trailers. Trailers sell for $700, variable cost is $300 per trailer and fixed cost is $680,000. Movers plans on selling 2,000 trailers

Movers sells utility trailers. Trailers sell for $700, variable cost is $300 per trailer and fixed cost is $680,000. Movers plans on selling 2,000 trailers in 2021.

Required:

a. Compute break-even point

b. Compute margin of safety (dollars).

c. Compute the degree of operating leverage.

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