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Question
Clockworks Co. reports the following data for the current year:Units Sold 1,200
Unit Sales Price $30
Unit Variable Cost $10
Total Fixed Cost"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6"u00a6.. $18,000
Required:
(a) Calculate Clockworks' pretax income.
(b) Calculate Clockworks' degree of operating leverage.
Answer
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Direct labor X X
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Variable manufacturing overhead
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