=+P11-6 Contribution margin, break-even sales, cost-volume-profit chart, margin ofsafety, and operating leverage Objs 2, 3, 4, 6 SPREADSHEET

/ 2. 40.0%

Aspen Co. expects to maintain the same inventories at the end of 2008 as at the beginning ofthe year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during 2008. A summary report ofthese estimates is as follows:

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