Croftsman Company recorded the following information for its main product: Selling price per unit Costs per...
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Croftsman Company recorded the following information for its main product: Selling price per unit Costs per unit (at the normal capacity of 24,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars $200 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage 50 30 25 Units 49 7.5 % of sales Croftsman Company recorded the following information for its main product: Selling price per unit Costs per unit (at the normal capacity of 24,000 units): Direct material Direct labour Variable overhead Fixed overhead Sales Commission Contribution margin ratio Breakeven sales Required: 1. Compute the contribution margin ratio and break-even sales. Margin of safety Dollars $200 2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.) Degree of operating leverage 50 30 25 Units 49 7.5 % of sales
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Answer rating: 100% (QA)
To compute the contribution margin ratio and breakeven sales we need to calculate the contribution margin per unit and the fixed costs 1 Contribution ... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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