Chapter 8, Problem 8.6E

What is the unutilized capacity percentage?

Dalton Freight Co. purchased a delivery truck on January 1, 2017, for $58,000. They installed a rear hydraulic lift for $7,500 and paid $2,700 in sales tax. Additionally, Dalton paid $2,200 for a one-year insurance policy. The estimated useful life of the truck is 8 years, and the residual value is $9,000. If Dalton uses the straight-line depreciation method, what is the book value at the end of 2018?

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Sterling Corporation sells a single product. Its annual revenue is $900,000, and profit is $40,000. Fixed costs amount to $210,000. What is its operating leverage?

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