Question
18. Determine the degree of operating leverage. Use expected sales A furniture manufacturer specializes in wood tables. The tables sell for Sl 00 per unit
18. Determine the degree of operating leverage. Use expected sales
A furniture manufacturer specializes in wood tables. The tables sell for Sl 00 per unit and incur S40 per unit in variable costs. The company has $6,000 in fixed costs per month. Expected sales are 200 tables per month. 17. 18. 19. Calculate the margin of safety in units. Determine the degree of operating leverage use expected sales. The company begins manufacturing wood chairs to match the tables. Chairs sell for SSO each and have variable costs of S30. The new production process increases fixed costs to $7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product. 17. Calculate the margin of safety in units. Begin by selecting the formula labels and entering the amounts to compute the number oftable the company must sell to break evem (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0".) + ) * = Required sales in units Select the formula labels and then enter the amounts to compute the margin of safety in units. Margin of safety in units 18. Determine the degree of operating leverage. Use expected sales. Begin by selecting the formula labels and then entering the amounts to compute the degree of operating leverage. (Round the degree of operating leverage to four decimal places, X.XXXX) = = Degree of leverage 19. The company begins manufacturing wood chairs to match the tables Chairs sell for $50 each and have variable costs of $30. The new production process increases fixed costs to S7,000 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product First, complete the table below to calculate the weighted-average contribution margin. (Round the weighted-average contribution margin per unit to the nearest cent) Tables Chairs Total Contribution margin Weighted-average contribution margin per unit Next, calculate the breakeven point in units for the "package" of productsone table and 4 chairs Start by selecting the formula and then enter the amounts to compute the breakeven point in units. (Abbreviation used: CM = contribution margin. Complete all input fields. For items with a zero value, enter "0". Round the breakeven point whole unit For example: 24526 would be rounded to 246) the required sales in unitsup to the nearest
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