The Saline Company produces and sells rock salt. its annual fixed cost was $10,000. during the past year, the company sold 8,000 bags of its product. it estimates that at this level of sales its degree of operating leverage is 1.5.a) how much was saline’s profit last year? b) at which level of production would the company just break-even?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Saline Company produces and sells rock salt. its annual fixed cost was $10,000. during the past year, the company sold 8,000 bags of its product. it estimates that at this level of sales its degree of operating leverage is 1.5.a) how much was saline’s profit last year? b) at which level of production would the company just break-even?

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