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A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $45 per unit in variable costs. The company
A furniture manufacturer specializes in wood tables. The tables sell for $150 per unit and incur $45 per unit in variable costs. The company has $8,400 in fixed costs per month. Expected sales are 180 tables per month. 17. Calculate the margin of safety in units. 18. Determine the degree of operating leverage. Use expected sales. 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $68 each and have variable costs of $40. The new production process increases fixed costs to $10,600 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 of table the company must sell to break even. (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 operating leverage 19. The company begins manufacturing wood chairs to match the tables. Chairs sell for $68 each and have variable costs of $40. The new production process increases fixed costs to $10,600 per month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
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