Question 3. In preparation for the next years operations management, Metal Incorporation came up with the following estimates.

	Total	Per Unit
Sales (350,500 units)	BD 1,950,781	BD 62.210
Direct Materials	BD 300,549	BD 20.500
Direct Labor (variable)	BD 50,600	BD 2.800
Variable Manufacturing Overhead	BD 75,000	BD 3.500
Fixed Manufacturing Overhead	BD 90,500	BD 5.000
Variable Selling & Administrative Expenses	BD 150,050	BD 6.000
Fixed Selling & Administrative Expenses	BD 70,500	Bd 1.800

Prepare the following:

1. Contribution margin in units and ratio. (4 Marks)
2. Break-even in dollars and Unit sales (4 marks)
3. The margin of safety in percentage and amount (4 Marks)
4. In the case of a total net income of BD 780,000, what will the degree of operating leverage be? (2 Marks)

Part II: Short Answer. Direction: Answer the below questions in your own words.

Question 1: Explain the difference between Variable and Absorption Costing. (2 Marks)

Question 2: Clarify why is it important for a company to measure its Operating Leverage. (2 Marks) Subject: MANAGERIAL ACCOUNTING Note: Please Write from a Computer or Laptop