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Lullumber Seats manufactures swivel seats for customized vans. It currently manufactures 9,800 seats per year, which it sells for $500 per seat. It incurs variable
Lullumber Seats manufactures swivel seats for customized vans. It currently manufactures 9,800 seats per year, which it sells for $500 per seat. It incurs variable costs of $250 per seat and fixed costs of $1,960,000. It is considering automating the upholstery rrocess, which is now largely manual, It estimates that if it does so, its fixed costs will be $3,175,200, and its variable costs will decline to $140 per seat. Answer the following questions. (a) Your answer is correct. Prepare a single-column CVP income statement based on current activity. Compute the contribution margin ratio, break-even point in sales dollars, margin of safety ratio, and degree of operating leverag based on current activity. (Round margin of safety ratio to 2 decimal places, eg. 2.55% or 2.55 and other answers to 0 decimal places, e 2,520.) Contribution margin ratio Your answer is correct. Prepare a single-column CVP income statement assuming that the company invests in the automated upholsterysystem. Compute the contribution margin ratio, break-even point in sales dollars, margin of safety ratio, and degree of operating leverage assuming the new upholstery system is implemented, (Round answers to 0 decimal ploces, e \& 2.) Contribution margin ratio Break-even point in dollars Margin of safety ratio Degree of operating leverage
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