Statistics Solutions

[All Steps] Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average

Question: Tetrangle Manufacturing has fixed costs of $2,160 per day. The firm manufactures bicycle component upgrade kits. The kits have a short-run average variable cost of $48 and are sold for $66 each.

  1. What is the breakeven level of daily output for the firm?
  2. What is the degree of operating leverage when daily output is Q = 170?

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