Breakeven level-degree of operating leverage

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Reference no: EM1368190

Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.

(i) What is the breakeven level of daily output for the firm?

(ii) What is the degree of operating leverage when daily output is Q = 170?

Reference no: EM1368190

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