Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at ₱25,000 a set. The variable cost per set was ₱17,500 and the fixed costs for Nowitzki were ₱10,000,000. What is Nowitzki’s degree of operating leverage? Show solution Group of answer choices 0.67 2.00 1.50 0.33

Nowitzki Corporation sells sets of encyclopedias. Nowitzki sold 4,000 sets last year at ₱25,000 a set. The variable cost per set was ₱17,500 and the fixed costs for Nowitzki were ₱10,000,000. What is Nowitzki’s degree of operating leverage? Show solution Group of answer choices 0.67 2.00 1.50 0.33

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 14EB: Company A has current sales of $4,000,000 and a 45% contribution margin. Its fixed costs are...

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Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
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