Business, 10.07.2019 06:00 jsully5159
Schlictor company sells cordless razors for $50. variable costs are 40% of sales and total fixed costs are $40,000. what is the firm's operating leverage if 2,000 units are sold?
Answers: 1
![Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}](/tpl/images/0072/2189/5962c.png)
![Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}](/tpl/images/0072/2189/6779e.png)
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Schlictor company sells cordless razors for $50. variable costs are 40% of sales and total fixed cos...
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