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The section of Waterways that produces controllers for the company provided the following information. Sales for month of February 4,000 Variable manufacturing cost per unit
The section of Waterways that produces controllers for the company provided the following information.
Sales for month of February | 4,000 | |
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.
Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.)
Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.)
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