The Smith Corporation has the following data for the current year: $$\begin{array} { l l }
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$ If sales decrease to 7,500 units in the following year,what will be Smith's operating leverage?

Question

The Smith Corporation has the following data for the current year: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$ If sales decrease to 7,500 units in the following year,what will be Smith's operating leverage?

Quizplus · Accepted Answer

The Answer of The Smith Corporation has the following data for the current year: $$\begin{array} { l l } 
\text { Selling price per unit } & \$ 15 \
\text { Variable cost per unit } & \$ 9 \
\text { Fixed costs } & \$ 45,000 \
\text { Units sold } & 10,000 \text { units }
\end{array}$$ If sales decrease to 7,500 units in the following year,what will be Smith's operating leverage?

The Smith Corporation Has the Following Data for the Current