Clockworks Co Required:
(A) Calculate Clockworks' Pretax Income

question 118

Essay

Clockworks Co. reports the following data for the current year: $\begin{array} { l r } \text { Units Sold } & 1,200 \\\text { Unit Sales Price } & \$ 30 \\\text { Unit Variable Cost } & \$ 10 \\\text { Total Fixed Cost } & \$ 18,000\end{array}$
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.

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Definitions:

Manipulated

Altered, controlled, or handled skillfully or in a clever way, often to achieve a desired outcome or effect.

Experimental Group

In an experiment, the group of participants who are exposed to the independent variable to observe its effect.

Real Cigarettes

Tobacco products that are smoked and contain nicotine, as opposed to electronic cigarettes or other nicotine delivery systems.

Fake Cigarettes

Products designed to mimic the appearance and sometimes the sensation of smoking, often used as aids in quitting smoking.