Question
Ramtha Sail Company produces one type of machine with the following costs and revenues for the year Total revenues $560,000 Total fixed costs $270,000 Total
Ramtha Sail Company produces one type of machine with the following costs and revenues for the year
Total revenues $560,000
Total fixed costs $270,000
Total variable costs $140,000
Total units produced and sold 70,000
a. What is the company's contribution margin ratio?
b. What is the company's break-even in units?
c. How many units would the company have to sell to attain a target profit of $15,000 if tax rate is 20%?
d. What is the company's margin of safety in dollars?
e. What is the company's degree of operating leverage?
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