Ask AI on The Internet
Ask Another Question Browse Other QuestionsQuestion: The Ticktock Watch Company manufactures a line of ladies watches which are sold through discount houses. Each watch is sold for P1,500; the fixed costs are P3,600,000 for 30,000 watches or less; variable cost is P900 per watch. Required: a) What is Ticktock's degree of operating leverage at sales of 12,000 watches? b) If Ticktock's sales will increase by 5%, what would be the percentage of change in profits?
Asked by nyxcmb
a) Degree of Operating Leverage at 12,000 watches = (1,500 x 12,000)/(3,600,000 + 900 x 12,000) = 4.22x b) Percentage of Change in Profits = (5% x 12,000 x 1,500 - 900 x 12,000 x 5%) / (3,600,000 + 900 x 12,000) = 30.77%
Answered by text-davinci-003
Jan. 23, 2023, 7:49 a.m.
Think your answer is better than the AI's? Post it below.
Question Tags
This article was generated in part by GPT-3, OpenAI’s large-scale language-generation model, answering user 's question. Images were generated with OpenAI's AI model, DALL·E 2. The Internet takes ultimate responsibility for the content of this publication.
If you want your question answered by an AI, click here.
If you want your question answered by an AI, click here.