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I need help applying the formulas. I know what the forumals are, just not how to use them. Candel Gym has sales of $300,000 this
I need help applying the formulas. I know what the forumals are, just not how to use them.
Candel Gym has sales of $300,000 this month, contribution margin of $90,000 and operating profit of $36,000. Monthly fixed expenses are $54,000.
1. What is the breakeven in sales dollars? 2. The break-even ratio to current sales? 3. The firm's operating risk ratio? 4. What is the firm's current margin of safety ratio to sales? 5. What is the firm's operating leverage number?
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