Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The section of Waterways that produces controllers for the company provided the following information Sales for month of February 4,100 Variable manufacturing cost per unit

image text in transcribed

The section of Waterways that produces controllers for the company provided the following information Sales for month of February 4,100 Variable manufacturing cost per unit $10.00 Sales price per unit $41.00 Fixed manufacturing overhead cost (per month for controllers) $80,000 Variable selling and administrative expenses per unit $2.30 Fixed selling and administrative expenses (per month for controllers) $13,800 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 decimal places, eg. 25%) 70 % Degree of Operating Leverage (Round to 2 decimal places, eg. 5.25.) Break-even Point in Dollars Margin of Safety Ratio (Round to 1 decimal place, eg.5.2%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

World Class Internal Audit Tales From My Journey

Authors: Norman Marks

1st Edition

1500791962, 978-1500791964

More Books

Students also viewed these Accounting questions

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

a. How many different groups were represented?

Answered: 1 week ago