Question 5: Iron Manufactures decorative iron railings. In Preparing for next year's operations, management has...
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Accounting
Question 5: Iron Manufactures decorative iron railings. In Preparing for next year's operations, management has developed the following estimates: Sales (20,000 units) Direct Materials Direct Labor (variable) Manufacturing Overhead: Variable Total S 1,000,000 $ 200,000 $ 50,000 Per Unit S 50 S 10 $ 2.50 $ 70,000 S 80.000 $ 3.50 $4 Fixed Selling & Administrative: Variable Fixed S 100.000 $ 30,000 S5 $1.50 Solve for: A. The Contribution Margin in Units and Ration. (2 Marks) B. The Break-even in Dollars and in units. (2 Marks) Evaluate C. The Margin of Safety in Percentage and in amount. (2 Marks) D. The degree of operating leverage if the net income is $ 660,500. (2 Marks)
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