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Tetrangle Manufacturing Has Fixed Costs of $2,160 Per Day

Question 85

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Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.
(i)What is the breakeven level of daily output for the firm?
(ii)What is the degree of operating leverage when daily output is Q = 170?

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