1.At a sales level of $97,000, Blue Company’s contribution margin is $17,000. If the degree of operating leverage is 8 at a $97,000 sales level, net operating income must equal:
2. Kendall Company has sales of 1,600 units at $50 a unit. Variable expenses are 35% of the selling price. If total fixed expenses are $42,000, the degree of operating leverage is:
3.
The following data pertain to last month’s operations:
| Selling price | $ 30 | per unit |
| Variable production cost | $ 7 | per unit |
| Fixed production cost | $78,000 | |
| Variable selling & admin. expenses | $ 8 | per unit |
| Fixed selling & admin. expenses | $34,000 |
The break even point in dollars is: