Brandy’s balloon service currently sells 1,000 balloon bundles per month. the competition in the balloon industry continues to soar within a thirty-mile vicinity of the service location. variable expenses were $2.00 per balloon and fixed expenses were $5,000. if brandy changes the price of balloon bundles to $10, how many balloon bundles should she sell to achieve her target operating income of $6,000?

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?