Cantor Products sells a product for $81. Variable costs per unit are $44, and monthly fixed costs 0mint in units?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Cantor Products sells a product for $81. Variable costs per unit are $44, and monthly fixed costs are $140,600.
&. What is the break-even point in units?
unts
En Pot
A What unit sales would be required to earn a target profit of $310,800?
Toma Repured Soies
units
c Ass.me they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3
decimal places.)
Depe of Dperaing Leverage
Transcribed Image Text:Cantor Products sells a product for $81. Variable costs per unit are $44, and monthly fixed costs are $140,600. &. What is the break-even point in units? unts En Pot A What unit sales would be required to earn a target profit of $310,800? Toma Repured Soies units c Ass.me they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Depe of Dperaing Leverage
& What unit sales would be required to earm a target profit of $310,800?
unds
c Assme they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3
decimal places)
d.Y saies decrease by 30% from that level, by what percentage will profits decrease? (Do not round intermediate calculation. Round
your answer to 2 decimal places)
gar Pot
Transcribed Image Text:& What unit sales would be required to earm a target profit of $310,800? unds c Assme they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places) d.Y saies decrease by 30% from that level, by what percentage will profits decrease? (Do not round intermediate calculation. Round your answer to 2 decimal places) gar Pot
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