Sales for month of February: 3,800 Unit variable manufacturing cost: $10.00 Unit selling price: $43.00 Fixed manufacturing overhead cost (per month for controllers): $83,000 Unit variable selling and administrative costs: $2.90 Fixed selling and administrative expenses (per month for controllers): $13,950 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Water Corporation on this product. Contribution Margin Ratio (Round to O decimal places, eg. 25%) 70 % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) 6.56 Break-even Point in Dollars 138500 Patio (Round to 1 decimal place, e.g. 5.2%)
Sales for month of February: 3,800 Unit variable manufacturing cost: $10.00 Unit selling price: $43.00 Fixed manufacturing overhead cost (per month for controllers): $83,000 Unit variable selling and administrative costs: $2.90 Fixed selling and administrative expenses (per month for controllers): $13,950 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Water Corporation on this product. Contribution Margin Ratio (Round to O decimal places, eg. 25%) 70 % Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) 6.56 Break-even Point in Dollars 138500 Patio (Round to 1 decimal place, e.g. 5.2%)
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
Related questions
Question
![The section of Waterways that produces controllers for the company provided the following information.
Sales for month of February:
Unit variable manufacturing cost:
Unit selling price:
3,800
$10.00
$43.00
Fixed manufacturing overhead cost (per month for controllers):
$83,000
Unit variable selling and administrative costs:
$2.90
Fixed selling and administrative expenses (per month for controllers): $13,950
Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Waterways
Corporation on this product.
Contribution Margin Ratio (Round to O decimal places, e.g. 25%.)
70
%
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, ex. 5.2%)
6.56
138500
%
SUPPORT
8:34 PM
3/16/2024](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F666a1c15-911e-4654-8498-639a26b6b6e5%2F6460a082-c03b-435e-93cf-42cd0b72de10%2Fv8nfzr9_processed.png&w=3840&q=75)
Transcribed Image Text:The section of Waterways that produces controllers for the company provided the following information.
Sales for month of February:
Unit variable manufacturing cost:
Unit selling price:
3,800
$10.00
$43.00
Fixed manufacturing overhead cost (per month for controllers):
$83,000
Unit variable selling and administrative costs:
$2.90
Fixed selling and administrative expenses (per month for controllers): $13,950
Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in sales dollars, and the margin of safety ratio for Waterways
Corporation on this product.
Contribution Margin Ratio (Round to O decimal places, e.g. 25%.)
70
%
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, ex. 5.2%)
6.56
138500
%
SUPPORT
8:34 PM
3/16/2024
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