Question
The section of Waterways that produces controllers for the company provided the following information. Sales for month of February4,000 Variable manufacturing cost per unit$9.75 Sales
The section of Waterways that produces controllers for the company provided the following information.
Sales for month of February4,000
Variable manufacturing cost per unit$9.75
Sales price per unit$42.50
Fixed manufacturing overhead cost (per month for controllers)$81,000
Variable selling and administrative expenses per unit$3.00
Fixed selling and administrative expenses (per month for controllers)$13,122
Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product.
Contribution Margin Ratio(Round to 0 decimal places, e.g. 25%.)
Degree of Operating Leverage(Round to 2 decimal places, e.g. 5.25.)
Break-even Point in Dollars$
Margin of Safety Ratio(Round to 1 decimal place, e.g. 5.2%.)
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