The crossover level of unit sales can be calculated for any two alternatives that have the same level of operating leverage.

Question

Quizplus · Accepted Answer

The crossover level of unit sales is calculated to compare two alternatives, focusing on their fixed and variable costs, not specifically on their operating leverage. Operating leverage can influence the analysis, but the key is comparing fixed and variable costs to find where the total costs of both alternatives are equal.

The Crossover Level of Unit Sales Can Be Calculated for Any