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What does this information suggest if Waterways cost structure is the same for the company as a whole? The section of Waterways that produces controllers
What does this information suggest if Waterways cost structure is the same for the company as a whole?
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 |
Contribution Margin Ratio | 70 | % | |
Degree of Operating Leverage | 4.78 | ||
Break-even Point in Dollars | $134,460 | ||
Margin of Safety Ratio | 20.9 | % |
What does this information suggest if Waterways cost structure is the same for the company as a whole?
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