Reference no: EM132540020
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
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