RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per...
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Accounting
RSE Corporation sells its product for $11 per unit. Its variable cost is $2 per unit, and total fixed costs are $600. Assuming next periods estimated sales are 240 units and that 240 units is within the relevant range, calculate the following amounts:
a. Degree of operating leverage
b. Margin of safety in units
c. Margin of safety in revenues (in $) ]
d. Estimated income or loss (indicate which)
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