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A furniture manufacturer specializes in wood tables. The tables sell for $ 1 4 0 per unit and incur $ 4 9 per unit in
A furniture manufacturer specializes in wood tables. The tables sell for $ per unit and incur $ per unit in variable costs. The company has $ in fixed costs per month. Expected sales are
tables per month.
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 $ each and have variable costs of $ The new production process increases fixed costs to $ per
month. The expected sales mix is one table for every four chairs. Calculate the breakeven point in units for each product.
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: contribution margin. Complete all
input fields. For items with a zero value, enter
Select the formula labels and then enter the amounts to compute the margin of safety in units.
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, XXXXX
Contribution margin
Operating income
Degree of operating leverage
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