Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%.)

%

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

Auditing And Systems Exam Questions And Explanations

Authors: Ph.D. Gleim, Irvin N., Ph.D. Hillison, William A., Grady M. Irwin

17th Edition

1581949278, 978-1581949278

More Books

Students also viewed these Accounting questions

Question

What are the ethical issues in this situation? Discuss.

Answered: 1 week ago