Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per

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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?  

 

    • 11 years ago
    Bamboo manufacturing sells its finished product for an average of $35 per unit with a variable cost per
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