Calculate the amount of unit sales required

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Questions -

Q1. If Twisty Taffy Companys fixed costs are $250,000, the unit selling price is $125, and the unit variable costs are $73, what is the break-even sales in units?

Q2. Grant Company has fixed costs of $1,400,000. Unit selling price is $240, and unit variable costs are $110. Calculate the amount of unit sales required to realize an operating income of $200,000.

Q3. Davidson Corporation has a contribution margin of $450,000 and operating profit of $150,000. Calculate its degree of operating leverage.

Q4. Taylor Company has fixed costs of $100,000 in total. The company manufactures golf balls for tournaments. Selling price = $2.00, direct materials = $1.00, while direct labor = $ .75. If Taylors actual sales are 500,000 units, what is the companys degree of operating leverage?

Reference no: EM132845590

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