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Calculate the break-even point in quantity and amount

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Question - Tender Yummy Burgers, Inc. sells food to University's cafeterias for P15 a piece. The fixed costs of this operation are P80,000, while the variable cost per piece is P10.

Required -

1) Calculate the Break-even point in quantity and amount.

2) Calculate the profit loss on 15,000 pieces and on 30,000 pieces.

3) What is the degree of operating leverage at 20,000 pieces and 30,000 pieces.

4) Why does the degree of operating leverage change as the quantity sold increases?

Reference no: EM132895893

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