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Question 5 [17] Nancy's Bakery sells cakes. Nancy is the lead baker and sells one type of cake secret family recipe. The base level of sales is at 8 000 units. The selling price is R150 per unit, the variable cost is R20 per unit and the total fixed costs are R50 000. Required: 5.1 5.2 Calculate Nancy's operating break-even point (in units) and its degree of operating leverage (DOL). Show all your calculations and round off the final answer to TWO decimals. (12) Explain what the DOL calculated in 5.1 means. (5)

Question 5 [17] Nancy's Bakery sells cakes. Nancy is the lead baker and sells one type of cake - a secret family recipe. The base level of sales is at 8000 units. The selling price is R150 per unit, the variable cost is R20 per unit and the total fixed costs are R50 000 . Required: 5.1 Calculate Nancy's operating break-even point (in units) and its degree of operating leverage (DOL). Show all your calculations and round off the final answer to TWO decimals. (12) 5.2 Explain what the DOL calculated in 5.1 means. (5) Question 5 [17] Nancy's Bakery sells cakes. Nancy is the lead baker and sells one type of cake - a secret family recipe. The base level of sales is at 8000 units. The selling price is R150 per unit, the variable cost is R20 per unit and the total fixed costs are R50 000 . Required: 5.1 Calculate Nancy's operating break-even point (in units) and its degree of operating leverage (DOL). Show all your calculations and round off the final answer to TWO decimals. (12) 5.2 Explain what the DOL calculated in 5.1 means

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