Question
Croftsman Company recorded the following information for its main product: Selling price per unit Costs per unit (at the normal capacity of 26,000 units): Direct
Croftsman Company recorded the following information for its main product: Selling price per unit Costs per unit (at the normal capacity of 26,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission $200 50 30 25 44 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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