A scooter manufacturer has fixed costs of $278,200 per month. The scooters have a short-run average variable cost of $300 and are sold for $430 each. 1. What is the degree of operating leverage when monthly output is Q=2,500?

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A scooter manufacturer has fixed costs of
$278,200 per month. The scooters have a
short-run average variable cost of $300 and
are sold for $430 each.
1. What is the degree of operating leverage
when monthly output is Q=2,500?
Transcribed Image Text:A scooter manufacturer has fixed costs of $278,200 per month. The scooters have a short-run average variable cost of $300 and are sold for $430 each. 1. What is the degree of operating leverage when monthly output is Q=2,500?
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