Question
The Company is a merchandising firm that sells a single product. May sales in units 5,250 Sales revenue $735,000 Less: Cost #1 MC161,750 Cost #2
The Company is a merchandising firm that sells a single product.
May
sales in units 5,250
Sales revenue $735,000
Less: Cost #1 MC161,750
Cost #2 VC 294,000
Cost #3 MC63,500
Cost #4 FC70,000
Cost #5 FC9,000
Cost #6 FC42,000
Total operating expenses346,250
Operating income 94,750
Cost #1 Formula: Y = $30,500 + $25/unit * X
Cost #3 Formula: Y = $11,000 + $10/unit * X
What is the margin of safety ($ and %) in May?
What is the degree of operating leverage in May?
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
