CALCULATOR PRINTER VERSION BACK NEXT Waterways Continuing Problem 06 a (Part 3) The section of Waterways that produces controllers for the company provided the following information. Sales in units for month of February Variable manufacturing cost per unit Sales price per unit Fixed manufacturing overhead cost (per month for controllers) Variable selling and administrative expenses per unit Fixed selling and administrative expenses (per month for controllers) 4,100 $9.00 $42.00 $80,000 $3.60 $12,400 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to o decimal places, e.g. 25%.) % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.) % Click if you would like to Show Work for this question: Open Show Work Do It! Review 6-4 a Bergen Hospital is contemplating an investment in an automated surgical system. Its current process relies on the a number of skilled physicians. The new equipment would employ a computer robotic system operated by a technician. The company requested an analysis of the old technology versus the new technology. The accounting department has prepared the following CVP income statements for use in your analysis. Old New Sales Variable costs Contribution margin Fixed costs $3,126,000 1,555,200 1,570,800 1,162,800 $408,000 $3,126,000 732,000 2,394,000 1,890,000 $504,000 Net income Compute the degree of operating leverage to the company under each scenario. (Round answers to 2 decimal places, e.g. 15.72.) Degree of operating leverage Old New Click if you would like to Show Work for this question: Open Show Wor! PRINTER VERSION