Trenton Tech Company sells portable speakers for $75 each. Variable costs are 45% of sales, and total fixed costs are $60,000. What is the firm's operating leverage if 3,000 units are sold?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter16: Cost-volume-profit Analysis
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Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Trenton Tech Company sells portable speakers for $75 each.
Variable costs are 45% of sales, and total fixed costs are $60,000.
What is the firm's operating leverage if 3,000 units are sold?
Transcribed Image Text:Trenton Tech Company sells portable speakers for $75 each. Variable costs are 45% of sales, and total fixed costs are $60,000. What is the firm's operating leverage if 3,000 units are sold?
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