Degree of operating leverage and margin of safety in units

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Reference no: EM131286978

RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next period’s estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts:

a. Degree of operating leverage

b. Margin of safety in units

c. Margin of safety in revenues (in $)

d. Estimated income or loss (indicate which)

Reference no: EM131286978

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