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RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next period’s estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts:

a.   Degree of operating leverage 

b.   Margin of safety in units 

c.   Margin of safety in revenues (in $)

d.   Estimated income or loss (indicate which)

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M92046669

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