Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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MetroTech Inc. is planning to launch a new smart home
device. They are considering a capital-intensive
approach:
Selling price per unit = $50
Variable costs per unit = $30
•
Fixed costs
$500,000 per year
Expected sales volume = 40,000 units
What is the operating leverage at 40,000 units?
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