Compute the break-even point in boxes

Reference no: EM1364544

Jack and Joe, Inc., sells fine chocolates at $15 a box. The fixed costs of this operation are $80,000, while the variable cost per box is $10.

a. What is the break-even point in boxes?
b. Calculate the profit or loss on 30,000 boxes.
c. What is the degree of operating leverage at 30,000 boxes?
d. If the firm has an annual interest expense of $10,000, calculate the degree of financial leverage at 30,000 boxes.
e. What is the degree of combined leverage?

Reference no: EM1364544

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