Schlictor Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's operating leverage if 2,000 units are sold?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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Schlictor company sells cordless razors solve this accounting questions

Schlictor Company sells cordless razors for
$50. Variable costs are 40% of sales and
total fixed costs are $40,000. What is the
firm's operating leverage if 2,000 units are
sold?
Transcribed Image Text:Schlictor Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's operating leverage if 2,000 units are sold?
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