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
What is ABC Ltd's break-even in sales dollars?
How many units would the company have to sell in order to have a net operating income of $40,000?
What is ABC's degree of operating leverage?
20
5
10
8
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?
ABC's fixed expenses to total expenses are closer to other firms within the industry
ABC will benefit more when the whole market grows than other firms within the industry
ABC's operating risk is lower than the industry average
ABC's variable expenses to total expenses are higher than other firms within the industry
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