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RL Corporation trade its finished goods for an average of dollar 35 per unit with a variable cost per unit of dollar 21. The company has fixed operating costs of $1,050,000.

a) Calculate the firm's operating breakeven point in units.
b) Calculate the firm's operating breakeven in dollars.
c) Using 100,000 units as a base, what is the firm's degree of operating leverage?

 

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9223647

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