Li-Wei Inc. recorded the following information for its main product: ...
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Accounting
Li-Wei Inc. recorded the following information for its main product:
Selling price per unit
$
370
Costs per unit (at the normal capacity of 39,900 units):
Direct material
135
Direct labour
74
Variable overhead
54
Fixed overhead
54
Sales Commission
10.0
% of sales
Required:
1. Compute the contribution margin ratio and break-even sales.
2. What is the margin of safety in dollars and units, and the degree of operating leverage? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.)
Answer & Explanation
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