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Waterways Continuing Problem 06 a (Part 3) The section of Waterways that produces controllers for the company provided the following information. Sales in units for
Waterways Continuing Problem 06 a (Part 3)
The section of Waterways that produces controllers for the company provided the following information.
Sales in units for month of February | 4,200 | |
Variable manufacturing cost per unit | $10.00 | |
Sales price per unit | $43.00 | |
Fixed manufacturing overhead cost (per month for controllers) | $83,000 | |
Variable selling and administrative expenses per unit | $2.90 | |
Fixed selling and administrative expenses (per month for controllers) | $13,250 |
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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