Cantor Products Sells a Product for $75

question 95

Essay

Cantor Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.What unit sales would be required to earn a target profit of $200,000?
c.Assume they achieve the level of sales required in part b,what is the degree of operating leverage?
d.If sales decrease by 30% from that level,by what percentage will profits decrease?

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Definitions:

Awareness

The state of being conscious of something, including the self, one's surroundings, or a particular concept.

External Events

Occurrences or situations originating outside an individual or system that can have significant effects on behavior or outcomes.

Internal Sensations

The perception of bodily functions, including pain, hunger, thirst, and the internal states of the body.

Adequate Sleep

The sufficient amount of sleep required for optimal health and functioning, varying by age and individual needs.