Waterways Continuing Problem 06 a (Part 3)
The section of Waterways that produces controllers for the company provided the following information.
Sales in units for month of February | 4,100 | |
Variable manufacturing cost per unit | $10.00 | |
Sales price per unit | $46.00 | |
Fixed manufacturing overhead cost (per month for controllers) | $79,000 | |
Variable selling and administrative expenses per unit | $3.80 | |
Fixed selling and administrative expenses (per month for controllers) | $14,310 |
Using this information for the controllers, determine the
contribution margin ratio, the degree of operating leverage, the
break-even point in dollars, and the margin of safety ratio for
Waterways Corporation on this product.
Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) | % | ||
Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) | |||
Break-even Point in Dollars | $ | ||
Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) | % |
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
Get Answers For Free
Most questions answered within 1 hours.