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: Fixed manufacturing overhead cost (per month for controllers): Unit variable selling and administrative costs: Fixed selling and administrative expenses (per month for controllers): Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) 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. Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars 3,900 $9.00 $40.00 $81,000 $3.00 Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%) $12,520 % 30°F Clear

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: Fixed manufacturing overhead cost (per month for controllers): Unit variable selling and administrative costs: Fixed selling and administrative expenses (per month for controllers): Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.) 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. Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars 3,900 $9.00 $40.00 $81,000 $3.00 Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%) $12,520 % 30°F Clear

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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:
Fixed manufacturing overhead cost (per month for controllers):
Unit variable selling and administrative costs:
Fixed selling and administrative expenses (per month for controllers):
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%.)
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, e.g. 5.2%.)
3,900
$9.00
$40.00
$81,000
$3.00
$12,520
$
%
30°F Clear

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