Lady ann products put together makeup packages to be sold, Ask an Expert

Finance

Lady Ann products put together makeup packages to be sold to department stores. The firm sells these packages for $8.00 each; variable costs are 75% of the retail price. Fixed costs are $375,000 a year.

A. Determine the break even point in #of units

B. Determine the number of units to be sold if the profit goal is $100,000

C. If the goal is met, what will be the Degree of Operating leverage?

D. If interest Expense is $20,000, what is the degree of financial leverage?

E. Determine the Degree of Combined Leverage.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91779697

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