Question: Use the following information for the next two problems: Hayward Headgear, Inc. sells ear muffs for Nordic skiing at $24 per set Variable costs are

Use the following information for the next two problems:

Hayward Headgear, Inc. sells ear muffs for Nordic skiing at $24 per set Variable costs are $16 per set. Fixed costs are $140,000 per year. Depreciation is $24,000 per year.

a.The accounting break-even is sets of ear muffs.

b.After reviewing the breakeven quantity calculated above, Hayward believes it can increase the number of ear muffs sets sold in the next year by 15%, what will be the percent increase in their degree of operating leverage?

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