Reference no: EM132541158

Pricher Corporation's income statement for last year appears below:

Sales .......................................................... $2,000,000

Cost of goods sold:

Direct materials ...................................... $500,000

Direct labor (variable) ............................ 150,000

Variable manufacturing overhead .......... 50,000

Fixed manufacturing overhead ............... 600,000 1,300,000

Gross margin ............................................. 700,000

Selling and administrative expenses:

Variable .................................................. 100,000

Fixed ....................................................... 300,000 400,000

Net operating income ................................ $ 300,000

Question a. The break-even point last year was

Question b. The degree of operating leverage last year was-