The ABC Company sells widgets at $$9$ each; variable unit cost is $$6,$ and fixed cost is $$60,000$ per year.

What is the break$-$even quantity point?

How many units must the company sell per year to achieve a profit of $$15,000?$

What will be the degree of operating leverage at the quantity sold in part a$?$ In part b$?$

What will be the degree of operating leverage if $30,000$ units are sold per year?

Answer rating: 100% (QA)

To find the breakeven quantity point we use the following formula Breakeven quantity Fixed costs Sel... View the full answer