Ashley Carroll
Week 4 Problems
Chap 5
2. The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $35 and has a variable cost of $22. There are $97,500 in fixed costs involved in the production process. a. Compute the break-even point in units.
b. Find the sales (in units) needed to earn a profit of $262,500.
10. The Sterling Tire Company’s income statement for 20X1 is as follows: Given this income statement, compute the following:a.Degree of operating leverage.
b.Degree of financial leverage
c.Degree of combined leverage.
d.Break-even point in units.
13. United Snack company sells 50-pound bags of peanuts to university dormitories for $20 a
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