Table 1 (Use this for questions 1-5) - 1469

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               Table 1 (Use this for questions 1-5)

          Average selling price per unit                $16.00

          Variable cost per unit                            $11.00

          Units sold                                             200,000

          Fixed costs                                         $800,000

          Interest expense                                   $ 50,000

01.     Based on the data in Table 1, what is the break-even point in units produced and sold?

         

         

02.     Based on the data contained in Table 1, what is the degree of operating leverage?

         

         

 

03.     Based on the data contained in Table 1, what is the contribution margin?

         

 

04.     Based on the data contained in Table 1, what is the degree of financial leverage?

       

 

05.     Based on the data contained in Table 1, what is the degree of combined leverage?

        

Solution Description

 

               Table 1 (Use this for questions 1-5)

          Average selling price per unit                $16.00

          Variable cost per unit                            $11.00

          Units sold                                        &n