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Need parts b,c & d . explanations appreciated ! Cullumber Seats manufactures swivel seats for customized vans. It currently manufactures 8,700 seats per year, which
Need parts b,c & d . explanations appreciated !
Cullumber Seats manufactures swivel seats for customized vans. It currently manufactures 8,700 seats per year, which it sells for $600 per seat. It incurs variable costs of $ 264 per seat and fixed costs of $ 2,192,400. It is considering automating the upholstery process, which is now largely manual. It estimates that if it does so, its fixed costs will be $3,090,240, and its variable costs will decline to $ 156 per seat. Answer the following questions. (a) Your answer is correct. Prepare a single-column CVP income statement based on current activity. CullumberSeats CVP Income Statement Sales $ 5220000 Variable Costs 2296800 i Contribution Margin 2923200 Fixed Costs 2192400 i Net Income/(Loss) $ 730800 Attempts: 1 of 2 Compute contribution margin ratio, break-even point in dollars, margin of safety ratio, and degree of operating leverage based on current activity. (Round margin of safety ratio and degree of operating leverage to 1 decimal place, es 25% or 2.5 and break-even point in dollars to decimal places... 2.520) 5 Contribution margin ratio Break even point in dollars Margin of safety ratio Degree of operating leverage X Prepare a CVP income statement assuming that the company invests in the automated upholstery system. Compute contribution margin ratio break even point in dollars, margin of safety ratio, and degree of operating leverage suming the new upholstery system is implemented (Round degree of operating leverage to 1 decimal place, es 25) Contribution margin ratio Break even point in dollars Margin of safety ratio $ Degree of operating leverage Step by Step Solution
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