Merry time bakery sells a variety of delicacies. Merry time bakery has built up a loyal customer
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Question:
Merry time bakery sells a variety of delicacies. Merry time bakery has built up a loyal customer base because of the quality and variety it delivers and the customer service it provides. In a typical month Merry time's revenue is $380,000 and he earns a net profit of $120,000. Merry time's contribution ratio is 40%.
- Determine Merry time's margin of safety at its current sales level (express as a percentage, rounding the nearest percentage point).
- What is Merry time's operating leverage -OL1 ? (express as a percentage, rounding the nearest percentage point).
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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