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.

---

Definitions:

Act Aggressively

Exhibiting behavior that intends to harm or show dominance over others, either physically or verbally.

Future Aggression

The likelihood or potential for an individual to express aggressive behavior or hostility in future circumstances.

Tension Release

The process of alleviating psychological or physical stress through various means such as relaxation techniques or expression of emotions.

Object Relations Theory

A psychoanalytic theory focusing on the significance of early relationships and their impact on emotional development and future interactions.