Question
Croftsman Company recorded the following information for its main product selling price per unit 200 Costs per unit (at the normal capacity of 27,600 units)
Croftsman Company recorded the following information for its main product
selling price per unit 200
Costs per unit (at the normal capacity of 27,600 units)
direct material 50
direct labour 30
variable overhead 25
fixed overhead 40
sales commision 7.5 % of sales
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.
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