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Croftsman Company recorded the following information for its main product: Selling price per unit $200 Costs per unit (at the normal capacity of 25, 200
Croftsman Company recorded the following information for its main product: Selling price per unit $200 Costs per unit (at the normal capacity of 25, 200 units) : Direct material 50 Direct labour . 30 Variable overhead 25 Fixed overhead 46 Sales Commission 7.5 % of sales Required: 1. Compute the contribution margin ratio and break-even sales. Contribution margin ratio % Breakeven 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.) Dollars Units Margin of safety Degree of operating leverage
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