One of the products produced by Orlando Citrus is Citrus Delight. The selling price per half-gallon is
Question:
One of the products produced by Orlando Citrus is Citrus Delight. The selling price per half-gallon is $4.50, and variable cost of production is $2.70. Total fixed costs per year are $316,600. The company is currently selling 200,000 half-gallons per year.
a. What is the margin of safety in units?
b. What is the degree of operating leverage?
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a Contribution margin per unit 4527 18 Breakeven units 316600...View the full answer
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Related Book For 
Cost Accounting Traditions and Innovations
ISBN: 978-0324026450
4th edition
Authors: Barfield Jesse, Raiborn Cecily, Kinney Michael
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