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Modern Artifacts can produce keepsakes that will be sold for $20 each. Non-depreciation fixed costs are $200 per year, and variable costs are $10 per unit. The initial investment of $600 will be depreciated straight-line over its useful life of 6 years to a final value of zero, and the discount rate is 15%.
a). What is the degree of operating leverage of Modern Artifacts when sales are $640? (Don't round intermediate calculations, round final answers to 2 decimal places.)
b). What is the degree of operating leverage when sales are $1,620? (Don't round intermediate calculations, round final answers to 2 decimal places.)
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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