Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs...
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Accounting
Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below:
Variable costs per unit:
Production
$5
SG&A
$1
Fixed costs:
Production
$40,000
SG&A
$60,000
Estimated volume
20,000 units
a) What is Stuart's projected margin of safety for the current year?
b) What is Stuart's projected degree of operating leverage for the current year?
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