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d) Calculate the degree of operating leverage for the Month of May. OUESTION 3- (14 POINTS) Olympians Inc. manufactures and sells a unique product.
d) Calculate the degree of operating leverage for the Month of May. OUESTION 3- (14 POINTS) Olympians Inc. manufactures and sells a unique product. The following data are extracted from the accounting records at December 3 1, 2017: Work in ro ess endin Commissions De reciation-facto Finished goods inventory, ending Other manufacturing overhead Rent Accounts receivable Su lies Direct materials be Mort a e Production units n Purchases direct materials Sales $ Finished oods be innin Prime costs total Direct labour Direct materials, endin De reciation-e ui ment General office salaries Advertisin Workin ro ess be innin ADDITIONAL INFORMATION: $67 ooo 230,000 To be determined To be determined 17,000 100,000 35,600 55 ooo 52,000 238 ooo To be determined To be determined 1 200,000 0 519,000 410 ooo 23 ooo To be determined 410 ooo 35,000 16 ooo 1. Supplies: $35,000 applies to factory operations. The remaining balance applies to 2. 3. 4. 5. 6. sales and administration. Rent: 60 % apply to factory operations and the rest applies to administration buildings. Depreciation-equipment: calculated as equal to $1.25 per unit produced. Deprecation-factory exceeds depreciation equipment by $6, 100. All the units produced during the year 2017 were sold. Sale price per unit was $30 during the year 2017.
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