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Delaware Berry harvests early-season strawberries for shipment throughout the eastern united states. The farm is maintained by a permanent staff of ten employees and seasonal
Delaware Berry harvests early-season strawberries for shipment throughout the eastern united states. The farm is maintained by a permanent staff of ten employees and seasonal workers who pick and pack the strawberries. The strawberries are sold in crates containing multiple individually packaged small containers. The selling price is $100 per crate, variables costs are $85 per crate, and fixed costs are $270,000 per year. In the year 2020 , Delaware Berry sold 50,000 crats. 1) Prepare a contribution income statement for the year ended December 31, 2020. 2) What is the unit (i.e., crate) contribution margin? 3) What is the company's break-even point in units? What is the break-even point in dollars? 4) What is the margin of safety for the company in the year 2020 (in units and in dollars)? 5) Determine the company's 2020 operating leverage
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