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): Break-even Point in Dollars 3,800 Margin of Safety Ratio (Round to 1 decimal place, eg 5.2%) $10.00 $43.00 $80,000 $2.90 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-ev point in sales dollars, and the margin of safety ratio for Waterways Corporation on this product. Contribution Margin Ratio (Round to O decimal places, eg 25%) Degree of Operating Leverage (Round to 2 decimal places, eg. 5.25.) $14,220

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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am. 108.

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 O decimal places, e.g. 25%)
Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.)
Break-even Point in Dollars
3,800
Margin of Safety Ratio (Round to 1 decimal place, eg 5.2%)
$10.00
Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-eves
point in sales dollars, and the margin of safety ratio for Waterways Corporation on this product.
$43.00
$80,000
$2.90
$14,220
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: 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 O decimal places, e.g. 25%) Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.) Break-even Point in Dollars 3,800 Margin of Safety Ratio (Round to 1 decimal place, eg 5.2%) $10.00 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-eves point in sales dollars, and the margin of safety ratio for Waterways Corporation on this product. $43.00 $80,000 $2.90 $14,220
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