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2. The contribution income statement of XYZ Manufacturing Company for the most recent year is given below: Sales (15,000 units AED 40 per unit) AED
2. The contribution income statement of XYZ Manufacturing Company for the most recent year is given below: Sales (15,000 units AED 40 per unit) AED 600,000 300,000 Variable expenses (15,000 units x 20). Contribution margin 300,000 Fixed expenses .. 100,000 Net operating profit. AED 200,000 Required: a. Compute CM ratio [4 marks] b. Compute break-even point in unit sales [5 marks] c. Compute the degree of operating leverage [5marks]
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