Beano Ltd manufactures beanbags. The company’s variable costs are $15 per unit and fixed operating costs...

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Beano Ltd manufactures beanbags. The company’s variable costsare $15 per unit and fixed operating costs are $2.1 millionannually. The beanbags are sold for $45 each.
Required
a What is Beano Ltd’s break-evenpoint in units?
What is Beano Ltd’s break-even point in sales dollars? Confirmyour answer using an alternative method.
What is Beano Ltd’s degree of operating leverage (DOL) if salesare 85,000 units for the year?
What is Beano Ltd’s EBIT if sales are 62,500 units for theyear.
What would be the financial implications of a plantmodernisation program to increase operating leverage in order toreduce its per-unit variable costs?

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Beano Ltd manufactures beanbags. The company’s variable costsare $15 per unit and fixed operating costs are $2.1 millionannually. The beanbags are sold for $45 each.Requireda What is Beano Ltd’s break-evenpoint in units?What is Beano Ltd’s break-even point in sales dollars? Confirmyour answer using an alternative method.What is Beano Ltd’s degree of operating leverage (DOL) if salesare 85,000 units for the year?What is Beano Ltd’s EBIT if sales are 62,500 units for theyear.What would be the financial implications of a plantmodernisation program to increase operating leverage in order toreduce its per-unit variable costs?