Duxbury 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 the breakeven point in units.
(b) Calculate Duxbury's pretax income.
(c) Calculate Duxbury's degree of operating leverage.
(d) Calculate the margin of safety in units.

Question

Duxbury 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 the breakeven point in units.
(b) Calculate Duxbury's pretax income.
(c) Calculate Duxbury's degree of operating leverage.
(d) Calculate the margin of safety in units.

Quizplus · Accepted Answer

The Answer of Duxbury 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 the breakeven point in units.
(b) Calculate Duxbury's pretax income.
(c) Calculate Duxbury's degree of operating leverage.
(d) Calculate the margin of safety in units.

Duxbury Co Required: (A) Calculate the Breakeven Point in Units

Duxbury Co Required:
(A) Calculate the Breakeven Point in Units