ABC Co. sells chairs for $90 per unit. The variable expenses are $63 per chair and the fixed costs are $135,000 per month. The company sells 8,000 chairs per month. Compute the degree of leverage if sales increase 0.10%

ABC Co. sells chairs for $90 per unit. The variable expenses are $63 per chair and the fixed costs are $135,000 per month. The company sells 8,000 chairs per month. Compute the degree of leverage if sales increase 0.10%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Hh2.

ABC Co. sells chairs for $90 per unit. The variable expenses are $63 per chair and the fixed costs are $135,000 per month. The company sells 8,000 chairs per month.

Compute the degree of leverage if sales increase 0.10%

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