What is the companys degree of operating leverage

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The following is from Alsatia Corporation's financial statement information for last month:

Sales                                        $1,400,000

Variable Expenses                      900,000

Fixed Expenses                           300,000    

The company has no beginning or ending inventories and produced and sold 10,000 units during the month.

A) What is the company's break-even in units?

B) How many units would the company have to sell to attain target profits of $225,000?

C) What is the company's degree of operating leverage?

Show all work. Answer all parts.

Reference no: EM13929962

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