ALIF Company manufactures and sells a single product, The Company's sales and expenses for last month follow:

Sales = $4,50,000

Less : variable expense = $1,80,000

Contribution margin = $2,70,000

Less : Fixed expenses = $2,16,000

Net operating income = $54,000

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Question :- Use fifo lifo method

a. Calculate the contribution margin (CM) ratio and variable expense ratio.

b. What is the monthly break-even point in units sold and in sales in dollars? (Use equation method]

C.How many units would have to be sold to earn a target profit of 45,000? [Use contribution margin method]

d. Compute margin of safety in dollar and percentage. e. Calculate degree of operating leverage.