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Information relating to the current operations of Alberto Corporation follows: Sales Variable costs Contribution margin Fixed costs Profit before taxes $120,000 (36,000) $ 84,000
Information relating to the current operations of Alberto Corporation follows: Sales Variable costs Contribution margin Fixed costs Profit before taxes $120,000 (36,000) $ 84,000 (70.000) $ 14.000 a) The corporation break-even point was 1,000 units. Compute Alberto's sales price per unit. Working: I b) Compute Alberto's degree of operating leverage Working: ($84,000/$14,000)=6 (DOL) c) Compute Alberto's margin of safety Working: (($120,000-$1,000) ($120,000))x100-99.2%
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