Find degree of operating leverage when daily output is given


Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.

a.) What is the break even level of daily output for the firm?
b.) What is the degree of operating leverage when daily output is Q = 170?

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Microeconomics: Find degree of operating leverage when daily output is given
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