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The section of Waterways that produces controllers for the company provided the following information. Sales for month of February: Unit variable manufacturing cost: Unit
The section of Waterways that produces controllers for the company provided the following information. Sales for month of February: Unit variable manufacturing cost: Unit selling price: Fixed manufacturing overhead cost (per month for controllers): Unit variable selling and administrative costs: Fixed selling and administrative expenses (per month for controllers): Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to O 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%.) 3,900 $9.00 $40.00 $81,000 $3.00 $12,520 $ % 30F Clear
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Contribution Margin Ratio Contribution margin ratio is computed as follows Contribution margin ratio Contribution per unit Selling price per unit x 10...Get Instant Access to Expert-Tailored Solutions
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