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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?
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