FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Stuart Company
Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:
Variable costs per unit: | |
Production | $5 |
SG&A | $1 |
Fixed costs: | |
Production | $40,000 |
SG&A | $60,000 |
Estimated volume | 20,000 units |
Refer to Stuart Company. What is Stuart's projected degree of operating leverage for the current year?
Select one:
a. 2.25
b. 1.67
c. 3.75
d. 1.80
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