Cantor Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.What unit sales would be required to earn a target profit of $200,000?
c.Assume they achieve the level of sales required in part b,what is the degree of operating leverage?
d.If sales decrease by 30% from that level,by what percentage will profits decrease?

Question

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The Answer of Cantor Products sells a product for $75.Variable costs per unit are $50,and monthly fixed costs are $75,000.Answer the following questions:
a.What is the break-even point in units?
b.What unit sales would be required to earn a target profit of $200,000?
c.Assume they achieve the level of sales required in part b,what is the degree of operating leverage?
d.If sales decrease by 30% from that level,by what percentage will profits decrease?

Cantor Products Sells a Product for $75