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ABC Ltd has provided the following data: Sales quantity (units) 10,000...

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Question

Accounting

ABC Ltd has provided the following data:


Sales quantity (units)

10,000

Selling price (per unit)

$50

Variable cost (per unit)

$30

Fixed cost (in yearly total)

$180,000


Blank-filling questions: do not put "$" before the val

  1. What is ABC Ltd's break-even in sales dollars?

  2. Question 10
    1.25 Points

    How many units would the company have to sell in order to have a net operating income of $40,000?

  3. Question 11
    1 Point

    What is ABC's degree of operating leverage?

    1. 20

    2. 5

    3. 10

    4. 8

  4. Question 12
    1 Point

    If the industry's average degree of operating leverage is 300% and ABC has a degree of operating leverage 800%, which of the following is correct?

    1. ABC's fixed expenses to total expenses are closer to other firms within the industry

    2. ABC will benefit more when the whole market grows than other firms within the industry

    3. ABC's operating risk is lower than the industry average

    4. ABC's variable expenses to total expenses are higher than other firms within the industry


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