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Question

Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per unit of $21. The company has fixed operating costs of $1,050,000.
(a)   Calculate the firm's operating breakeven point in units.
(b)   Calculate the firm's operating breakeven point in dollars.
(c)   Using 100,000 units as a base, what is the firm's degree of operating leverage?

Answer

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