Duxbury Co$\begin{array}{lr}
\text { Units sold } &1,200 \
\text { Unit sales price } &\$ 30 \
\text { Unit variable cost } &\$ 10 \
\text { Total fixed cost } &\$ 18,000
\end{array}$

Question

Duxbury Co$\begin{array}{lr}
 \text { Units sold } &1,200 \
 \text { Unit sales price } &\$ 30 \
 \text { Unit variable cost } &\$ 10 \
 \text { Total fixed cost } &\$ 18,000
\end{array}$

Examlex · Accepted Answer

The Answer is a.BE units = $18,000/(30 - 10)= 900 units
b.

\begin{array}{ll} ext { Sales ( 1,200 units × \$ 30 each } &\$ 36,000 \ ext { Variable costs }(1,200 imes \$ 10) &{(12,000)}\ ext {Contribution margin } &{\$ 24,000} \ ext {Fixed costs } &{(18,000}\ ext { Income before taxes } &{\$ 6,000}\end{array}

c.Degree of operating leverage = $24,000/$6,000 = 4
d.MS = 1,200 units - 900 units = 300 units.

Duxbury Co Required:
A

Definitions:

Duxbury Co Required: A

Definitions:

Duxbury Co Required:
A