Subject: MANAGERIAL ACCOUNTING Note: Please Write from a Computer or Laptop

Problem 3. Iron Manufactures decorative iron railings. In Preparing for next year's operations, management has developed the following estimates: Total $2,000,000 $ 210,000 5 50,000 Per Unit $53 $ 12 $ 4 Sales (40,000 units) Direct Materials Direct Labor Variable) Manufacturing Overhead: Variable Fixed Selling & Administrative: Variable Fixed $ 60,000 $ 55,000 $6 $6 $ 95,000 $ 40,000 $ 8 $ 3.50 Required: 1- Unit contribution margin 2- Contribution margin ratio 3- Break - even in dollar sales 4- Break even in unit sales 5- Margin of safety percentage 6- Margin of safety in amount 7- If the net income is 5 830,000, what is the degree of the operating leverage