Lost time watch ltw company manufactures watches that are, Finance Basics

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Lost time watch ltw company manufactures watches that are

Lost Time Watch (LTW) Company manufactures watches that are sold for $200 each. Fixed operating costs are $640,000 and variable costs are $120 per watch.

(a) What is LTW's operating breakeven point?

(b) What is LTW's degree of operating leverage (DOL) at sales of 10,000 units?

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