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19. Green Companys variable expenses are 75% of sales. At

Resolved Question:

19. Green Company's variable expenses are 75% of sales. At a sales level of $400,000, the company's degree of operating leverage is 8. At this sales level, fixed expenses are

A. $87,500.
B. $50,000.
C. $75,000.
D. $100,000.

20. Use the following information to answer this question.

Callaham Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $115.80 per unit.

Sales volume (units)



Cost of sales
$338,000 $422,500

Selling and administrative costs
$89,600 $106,000

The best estimate of the total variable cost per unit is

A. $106.90.
B. $84.50.
C. $100.90.
D. $105.70.
Submitted: 6 years ago.
Category: Homework
Expert:  Annie Kavitha replied 6 years ago.

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