Solution-Compute the Company expected degree of operating

Compute the Company expected degree of operating leverage

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Question - GP-m4 Company produces a single product that it sells for $725 per unit. The costs of producing this product include direct materials and direct labor, both variable costs, at a total of $250 per unit and an overhead cost, which is a mixed cost. Information about the overhead cost for the past seven months appears below:

Month	Units Sold	Overhead Cost
March	367	$109,470
April	346	$104,330
May	388	$115,080
June	354	$106,420
July	371	$110,810
August	342	$103,120
September	359	$107,490

GP-m4 Company expects to sell 382 units during October.

Required - Compute the GP-m4 Company's expected degree of operating leverage for October?

Reference no: EM132747837

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Compute the Company expected degree of operating leverage

Reference no: EM132747837

Reference no: EM132747837

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