Ink limited sells 6000 bottles of ink in a year at a price


Question - INK limited sells 6,000 bottles of ink in a year at a price of $4 per bottle. The variable cost per bottle is $2 and the fixed operating cost are $4,000. The financing cost is $6,000. Determine the degree of operating leverage and the degree of financial leverage.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Ink limited sells 6000 bottles of ink in a year at a price
Reference No:- TGS02893149

Now Priced at $25 (50% Discount)

Recommended (97%)

Rated (4.9/5)