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Calculate the ?degree of operating leverage

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Reference no: EM131794531

Problem

RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next period's estimated sales are 240 units and that 240 units is within the relevant range.

Calculate the following amounts:

a.?Degree of operating leverage?
b.?Margin of safety in units
c.?Margin of safety in revenues (in $)
d.?Estimated income or loss.

Reference no: EM131794531

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