What unit sales would be required to earn target profit

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Reference no: EM131291873

Cantor Products sells a product for $77. Variable costs per unit are $36, and monthly fixed costs are $131,200.

a. What is the break-even point in units?

b. What unit sales would be required to earn a target profit of $328,000?

c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.)

d. If sales decrease by 30% from that level, by what percentage will profits decrease? (Do not round intermediate calculation. Round your answer to 2 decimal places.)

Reference no: EM131291873

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