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Compute the contribution margin ratio and break-even sales

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Reference no: EM133062341

Question - Croftsman Company recorded the following information for its main product selling price per unit 200 Costs per unit (at the normal capacity of 27,600 units) direct material 50

direct labour 30

variable overhead 25

fixed overhead 40

sales commision 7.5 % 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?

Reference no: EM133062341

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