Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are...
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Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below: Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production $40,000 SG&A $60,000 Estimated volume 20,000 units a) What is Stuart's projected margin of safety for the current year? b) What is Stuart's projected degree of operating leverage for the current year? Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below: Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production $40,000 SG&A $60,000 Estimated volume 20,000 units a) What is Stuart's projected margin of safety for the current year? b) What is Stuart's projected degree of operating leverage for the current year?
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Solution a Selling price per unit 15 Variable cost per unit Production cost per unit SGA per u... View the full answer
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