Sales for month of February: 3,800 Unit variable manufacturing cost: $10.00 Unit selling price: $43.00 Fixed manufacturing overhead cost (per month for controllers): $83,000 Unit variable selling and administrative costs: $2.90 Fixed selling and administrative expenses (per month for controllers): $13,950 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Water Corporation on this product. Contribution Margin Ratio (Round to O decimal places, eg. 25%) 70 % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) 6.56 Break-even Point in Dollars 138500 Patio (Round to 1 decimal place, e.g. 5.2%)
Sales for month of February: 3,800 Unit variable manufacturing cost: $10.00 Unit selling price: $43.00 Fixed manufacturing overhead cost (per month for controllers): $83,000 Unit variable selling and administrative costs: $2.90 Fixed selling and administrative expenses (per month for controllers): $13,950 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Water Corporation on this product. Contribution Margin Ratio (Round to O decimal places, eg. 25%) 70 % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) 6.56 Break-even Point in Dollars 138500 Patio (Round to 1 decimal place, e.g. 5.2%)
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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