Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Craftman Inc following information for its main product Selling price per unit $ 330 Costs per unit (at the normal capacity of 33,000 units): Direct
Craftman Inc following information for its main product
Selling price per unit | $ | 330 | ||
Costs per unit (at the normal capacity of 33,000 units): | ||||
Direct material | 40 | |||
Direct labour | 20 | |||
Variable overhead | 20 | |||
Fixed overhead | 55 | |||
Sales Commission | 7.5 | % of sales | ||
Required:
1. Compute the contribution margin ratio and break-even sales.
2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started