Parker company sells wireless solution general accounting question Parker Company sells wireless keyboards for$80. Variable costs are 50% of sales and totalfixed costs are $60,000. What is the firm'soperating leverage if 2,500 units are sold?

Step 1: Formula Operating leverage = Contribution margin/Profit Step 2: Contribution margin per…

Answered: Parker Company sells wireless keyboards…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parker Company sells wireless keyboards for $80. Variable costs are 50% of sales and total fixed costs are $60,000. What is the firm's operating leverage if 2,500 units are sold?