Alpha Limited has sales of £100,000, variable costs of £60,000 and fixed costs of £20,000. What is the operating gearing of the business?

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Buildit Ltd has ascertained that its total costs (T) can be estimated for any level of output (O) and sales (S) according to the following equation: T = (£50 × O + £10,000) + (£20 × S + £5,000) If the production level was 500 units and sales were 400 units, what would Buildit's fixed costs be? O A. £48,000 O B. £15,000 O C. £35,000 O D. £33,000

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