Question: What is operating leverage, and how does it affect a firm's business risk? a. Show the operating break-even point if a company has fixed costs

What is operating leverage, and how does it affect a firm's business risk?

a. Show the operating break-even point if a company has fixed costs of $22,000, a sales price of $36, and variables costs of $14.

b. What is the break-even quantity if the price is decreased to $30?

c. What is the break-even point if the price is decreased to $30 and costs increase to $19?

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