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Question 3: Trex Manufacturing decorative doors are preparing for next year's operations. The Management have developed the following estimates. Help the company determine their contribution
Question 3: Trex Manufacturing decorative doors are preparing for next year's operations. The Management have developed the following estimates. Help the company determine their contribution margin in both units and ratio (2 marks each = 4 Marks), Break even in dollars and units (2 marks each = 4 Marks), Margin of safety in percentage and amount (2 marks each = 4 Marks), and if the management have decided that the company's traget net operating income is 5860,000, determine the degree of operating levearge (2 marks computation, I marks analysis = 3 Marks) 1 S Total 2.000.000 S 210.000 S 50,000 Per Unit S 53 S12 $4 Sales (40,000 units) T Direct Materials Direct Labor (Variable) Manufacturing Overhead Variable Fixed Selling & Administrative Variable Enced $ 60,000 $ 55.000 S 95.000 0000
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