Need help on PART (b)

Question 1

E-Z Seats manufactures swivel seats for customized vans. It currently manufactures 12,000 seats per year, which it sells for $510 per seat. It incurs variable costs of $180 per seat and fixed costs of $2,360,000. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,540,000, and its variable costs will decline to $140 per seat. With the class divided into groups, answer the following questions.

(b)Compute contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. (Round ratios and degree of operating leverage to 2 decimal places, e.g. 2.50 and break-even point in dollars to 0 decimal places, e.g. 2,520.)

show me the steps to get contributino margin ratio and break even polint in dollars as well for the rest.

? (a) Your answer is correct. Prepare a CVP income statement based on current activity. E-Z Seats CVP Income Statement 5120000 Variable Costs Contribution Margin ? 3960000 Fixed Costs 2,360,000 1600000 Net Income/(Loss)