PART III COST-VOLUME-PROFIT (8 points) Walton Widgets manufactures a product that sells for $40...
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PART III COST-VOLUME-PROFIT (8 points) Walton Widgets manufactures a product that sells for $40 per unit. Walton incurs a variable cost per unit of $24 and $1,400,000 in total fixed costs to produce this product. It is currently selling 92,000 units. Instructions: Complete each of the following requirements, presenting labeled supports computations. (1) Should Walton Widgets give a commission to its salesmen based on 8% of sales, if it will decrease fixed costs by $300,000 and increase sales volume 10%? Support your answer with labeled computations. (9) Compute the degree of operating leverage for each company
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