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Problem:

The Poseidon Swim company produces swim trunks. The average selling price for one of their swim trunks is $39. The variable cost per unit is $20. Poseidon swim has average fixed costs per year of $57,122.

Required:

Question: Determine the degree of operating leverage for the level of production and sales 4,333 units?

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91163051

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