Levin sdnbhd has fixed operating cost of rm72000 variable, Finance Basics

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Levin sdnbhd has fixed operating cost of rm72000 variable

Levin SdnBhd has fixed operating cost of RM72,000, variable cost of RM6.75 per unit, and selling price of RM9.75 per unit.

a) Calculate the operating breakeven point in units.
b) Compute the degree of operating leverage (DOL) using the following unit sales levels as a base: 25,000; 30,000; 40,000. Use the formula.
c) Graph the DOL figures that you can computed in part b(on the y axis) against base sale levels (on the x axis).
d) Compute the DOL at 24,000 units; add this point to your graph.
e) What principle does your graph and figures illustrate?

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Finance Basics: Levin sdnbhd has fixed operating cost of rm72000 variable

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Finance Basics: Levin sdnbhd has fixed operating cost of rm72000 variable

Reference No:- TGS0630701

Have a Question? (oR Write a Review)

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Finance Basics: Levin sdnbhd has fixed operating cost of rm72000 variable

Reference No:- TGS0630701

Recent Questions Asked Finance Basics

Q : Formulate the problem of finding the minimum cost way of

Q : Should be succinct and to the point describing what the

Q : A silicon diode with an area of 100mmacute100mm is doped

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Q : Levin sdnbhd has fixed operating cost of rm72000 variable

Q : Provide an output v to indicate that at least one of

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