What is the operating breakeven point

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Reference no: EM13723917

The Niendorf Corporation produces teakettles, which it sells for $15 each. Fixed costs are $700,000 for up to 400,000 units of output. Variable costs are $10 per kettle.

(a) What is the operating breakeven point? Illustrate by means of a chart.

(b) What is Niendorf’s degree of operating leverage at sales of (i) 125,000 and (ii) 175,000 units?

Reference no: EM13723917

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