TORT Company produced 40,000 units of product in 2020. Sales Revenue per unit was $20; variable cost per unit was $12 and contribution margin in total was $320,000. Fixed cost was $220,000 and operating income was $100,000. For blank one, what was the contribution margin ratio (to nearest 0.1%)? For blank two, what was the degree of operating leverage (to nearest 0.01)? For blank three, what was the breakeven point in unit sales? For blank four, what was the margin of safety in unit sales? Blank # 1 A/ Blank # 2 Blank # 3 A/ Blank # 4
TORT Company produced 40,000 units of product in 2020. Sales Revenue per unit was $20; variable cost per unit was $12 and contribution margin in total was $320,000. Fixed cost was $220,000 and operating income was $100,000. For blank one, what was the contribution margin ratio (to nearest 0.1%)? For blank two, what was the degree of operating leverage (to nearest 0.01)? For blank three, what was the breakeven point in unit sales? For blank four, what was the margin of safety in unit sales? Blank # 1 A/ Blank # 2 Blank # 3 A/ Blank # 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:TORT Company produced 40,000 units of product in 2020. Sales Revenue per unit
was $20; variable cost per unit was $12 and contribution margin in total was
$320,000. Fixed cost was $220,000 and operating income was $100,000. For blank
one, what was the contribution margin ratio (to nearest 0.1%)? For blank two, what
was the degree of operating leverage (to nearest 0.01)? For blank three, what was
the breakeven point in unit sales? For blank four, what was the margin of safety in
unit sales?
Blank # 1
A/
Blank # 2
Blank # 3
A
Blank # 4
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