Vicks Inc. Produced and sold 240,000 bags of organic fertilizer as follows: Sales revenue P1,896,000 Fixed costs: Manufacturing margin 1,092,000 Manufacturing P520,000 Contribution Margin 912,000 Selling & administrative 270,000

Vicks Inc. Produced and sold 240,000 bags of organic fertilizer as follows: Sales revenue P1,896,000 Fixed costs: Manufacturing margin 1,092,000 Manufacturing P520,000 Contribution Margin 912,000 Selling & administrative 270,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Required:

1. The company's margin of safety in unite is closest to?
2. The company's degree of operating leverage is closest to?

Vicks Inc. Produced and sold 240,000 bags of organic fertilizer as follows:
Sales revenue
P1,896,000
Fixed costs:
Manufacturing margin
1,092,000 Manufacturing
P520,000
Contribution Margin
912,000
Selling & administrative
270,000

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