Solved

Teal Company the Following Information Relates to Financial Projections of Teal

Question 72

Multiple Choice

Teal Company The following information relates to financial projections of Teal Company:
 Projected sales 60,000 units  Projected variable costs $2.00 per unit  Projected fixed costs $50,000 per year  Projected unit salesprice $7.00\begin{array}{ll}\text { Projected sales } & 60,000 \text { units } \\\text { Projected variable costs } & \$ 2.00 \text { per unit } \\\text { Projected fixed costs } & \$ 50,000 \text { per year } \\\text { Projected unit salesprice } & \$ 7.00\end{array} Refer to Teal Company.If Teal Company achieves its projections,what will be its degree of operating leverage?


A) 6.00
B) 1.20
C) 1.68
D) 2.40

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents