Clockworks Co

question 135

Essay

Clockworks 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 Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.

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Definitions:

Smegma

A substance made up of shed skin cells, skin oils, and moisture that can accumulate under the foreskin in males and around the labia in females.

Infections

The invasion and multiplication of microorganisms such as bacteria, viruses, and parasites that are not normally present within the body.

Cryptorchidism

A condition in which one or both of the testes fail to descend from the abdomen into the scrotum in males, often corrected with surgery.