MicroCast is the market leader in USB flash disk market. The company discovered a new breakthrough...
MicroCast is the market leader in USB flash disk market. The company discovered a new breakthrough technology. Using this technology, the company has just started to produce and sell 5 terabyte flash disks which look exactly the same as a 32 gigabyte model. The sales price is $150 and variable cost is $30 a piece. The fixed cost is $5 billion dollars per year (including the depreciation). If the current production level is 100 million units, what is the degree of operating leverage? Assume that the tax rate is 35 %.
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1.043 |
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5 |
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1.2 |
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1.71 |
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MicroCast is the market leader in USB flash disk market. The
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