Question

Duxbury Co. reports the following data for the current year:


Units sold 1,200
Unit sales price $30
Unit variable cost $10
Total fixed cost $18,000

Required:
a. Calculate the break-even point in units.

b. Calculate Duxbury's pretax income.
c. Calculate Duxbury's degree of operating leverage.

d.) Calculate the margin of safety in units.

Answer

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