Calculate the firms operating breakeven point in units


Allen Corporation sells its finished product for an average of $55 per unit with a variable cost per unit of $30. The company has fixed operating costs of $1,250,000.

(a) Calculate the firm's operating breakeven point in units.

(b) Calculate the firm's operating breakeven point in dollars.

(c) Using 100,000 units as a base, what is the firm's degree of operating leverage?

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Financial Management: Calculate the firms operating breakeven point in units
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