Waterways Continuing Problem
The section of Waterways that produces controllers for the company provided the following information.
| Sales for month of February |
4,000 |
| Variable manufacturing cost per unit |
$9.75 |
| Sales price per unit |
$42.50 |
| Fixed manufacturing overhead cost (per month for controllers) |
$81,000 |
| Variable selling and administrative expenses per unit |
$3.00 |
| Fixed selling and administrative expenses (per month for controllers) |
$13,122 |
Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways Corporation on this product.
Contribution Margin Ratio (Round to 0 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%.)