Calculate the companys break-even point in lek and units

Reference no: EM133611124

Case: The EBI company produces children's toys. One of its products is sold for 1400 ALL/unit. The total of fixed expenses related to this product are 250,000 ALL per month and the expenses of variables, which are included in the production of this product, are 1250 ALL per unit. Sales monthly are 20,000 units.

a) Calculate the company's break-even point in Lek and units. b) Calculate the number of units to sell to earn net operating income equal to 250,000 ALL per month.

c) What is the operating leverage for 10,000 units produced and make the corresponding interpretation (a method).

Reference no: EM133611124

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