What will be the degree of operating leverage

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Reference no: EM131055291

Lady Ann products put together makeup packages to be sold to department stores. The firm sells these packages for $8.00 each; variable costs are 75% of the retail price. Fixed costs are $375,000 a year.

A. Determine the break even point in #of units

B. Determine the number of units to be sold if the profit goal is $100,000

C. If the goal is met, what will be the Degree of Operating leverage?

D. If interest Expense is $20,000, what is the degree of financial leverage?

E. Determine the Degree of Combined Leverage.

Reference no: EM131055291

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