Reactor Inc. sells 800 units @ $60 each. Variable cost is 50% of sales price. Fixed cost = $15,000. What is the degree of operating leverage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Reactor Inc. sells 800 units @ $60 each. Variable cost is 50%
of sales price. Fixed cost = $15,000.
What is the degree of operating leverage?
Transcribed Image Text:Reactor Inc. sells 800 units @ $60 each. Variable cost is 50% of sales price. Fixed cost = $15,000. What is the degree of operating leverage?
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