Duxbury Co.reports the following data for the current year:
Units Sold ………………………………………..1,200
Unit Sales Price ………………………………………..$30
Unit Variable Cost ……………………………………….. $10
Total Fixed Cost……………………………………….. $18,000
Required:
(a)Calculate Duxbury's pretax income.
(b)Calculate Duxbury's degree of operating leverage.

Question

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The Answer of Duxbury Co.reports the following data for the current year:
Units Sold ………………………………………..1,200
Unit Sales Price ………………………………………..$30
Unit Variable Cost ……………………………………….. $10
Total Fixed Cost……………………………………….. $18,000
Required:
(a)Calculate Duxbury's pretax income.
(b)Calculate Duxbury's degree of operating leverage.