Laminex Ltd. manufactures a coffee table that sells for $250 per unit. The company has variable costs of $150 per unit and total fixed costs of $100,000 per period.
a. What is the break-even point in terms of units sold?
b. If current sales levels are 1,200 units, what is the margin of safety in sales revenue dollars?
c. If current sales levels are 1,200 units, what is Laminex's degree of operating leverage?

Question

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The Answer of Laminex Ltd. manufactures a coffee table that sells for $250 per unit. The company has variable costs of $150 per unit and total fixed costs of $100,000 per period.
a. What is the break-even point in terms of units sold?
b. If current sales levels are 1,200 units, what is the margin of safety in sales revenue dollars?
c. If current sales levels are 1,200 units, what is Laminex's degree of operating leverage?