Question 6

Q4 to Q6 are based on this case: Candelabra Cleaning Company's total fixed expenses amount to $30,000. Contribution margins are 30% of sales and sales of $250,000, earning total contribution of $75,000 and operating income of $45,000. Q4..What is Candelabra's operating leverage? _ (rounded) A. 3.889 B. 1.667 C. 2.500 D. 3.333 E. None of these Q5. What is Candelabra's break-even sales dollars? __(rounded) A. $9000 B. 21000 C. 42857 D. 100000 E. None of these Q6. What is Candelabra's safety-margin ratio to the target sales? (rounded) A. 0.257 B. 0.40 C. 0.30 D. 0.60 E. None of these