Solved: What is the firms gain or loss at sales, Finance Basics

What is the firms gain or loss at sales

Question: The Niendorf Corporation produces tea kettles which it sells for $15 each. Fixed costs are $700,000 for output up to 400,000 units. Variable costs amount to $10 per kettle.

A) What is the firm's gain or loss at sales of 125,000 units? Of 175,000 units?

B) What is the breakeven point?

C) What is Niendorf's degree of operating leverage at sales of 125,000 units? Of 150,000 units? Of 175,00 units?

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Finance Basics: What is the firms gain or loss at sales

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