Clockworks Co. reports the following data for the current year: $\begin{array} { l r }
\text { Units Sold } & 1,200 \
\text { Unit Sales Price } & \$ 30 \
\text { Unit Variable Cost } & \$ 10 \
\text { Total Fixed Cost } & \$ 18,000
\end{array}$
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.

Question

Clockworks Co. reports the following data for the current year: $\begin{array} { l r } 
\text { Units Sold } & 1,200 \
\text { Unit Sales Price } & \$ 30 \
\text { Unit Variable Cost } & \$ 10 \
\text { Total Fixed Cost } & \$ 18,000
\end{array}$
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.

Quizplus · Accepted Answer

The Answer of Clockworks Co. reports the following data for the current year: $\begin{array} { l r } 
\text { Units Sold } & 1,200 \
\text { Unit Sales Price } & \$ 30 \
\text { Unit Variable Cost } & \$ 10 \
\text { Total Fixed Cost } & \$ 18,000
\end{array}$
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.

Clockworks Co Required: (A) Calculate Clockworks' Pretax Income

Clockworks Co Required:
(A) Calculate Clockworks' Pretax Income