Determine the contribution margin ratio

Assignment Help Managerial Accounting
Reference no: EM132528651

The section of Waterways that produces controllers for the company provided the following information.

Sales for month of February 3,800

Variable manufacturing cost per unit $10.00

Sales price per unit $45.00

Fixed manufacturing overhead cost (per month for controllers )$82,000

Variable selling and administrative expenses per unit $3.50

Fixed selling and administrative expenses (per month for controllers) $14,320

Question1 : 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.

  1. Contribution Margin Ratio (Round to 0 decimal places, e.g. 25%.)%
  2. Degree of Operating Leverage (Round to 2 decimal places, e.g. 5.25.)
  3. Break-even Point in Dollars$
  4. Margin of Safety Ratio (Round to 1 decimal place, e.g. 5.2%.)

Reference no: EM132528651

Questions Cloud

Which business transactions are impacted on income statement : Which business transactions are impacted on income statement, balance sheet and statement of cash flow when you are using the accrual accounting method
What is the payback period for each project : What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
What would the total recruiting cost be : What would their total recruiting cost be? Assume Digby spends the same amount extra above the $1,000 recruiting base as they did last year.
Determine the sales mix based on unit sales for each product : Determine the sales mix based on unit sales for each product.Sale of sprinklers 410,300 units at $27.00,Variable manufacturing cost per unit
Determine the contribution margin ratio : Determine the contribution margin ratio, the degree of operating leverage, the break-even point in dollars, and the margin of safety ratio for Waterways
What factors influence group endings : A group has three stages: a beginning, a middle, and an end. What differentiates one stage from another? What factors influence group endings
Calculate the tax cost ratio : Assuming that investors pay taxes on net short-term and long term capital gains at the end highest rate, calculate the tax cost ratio.
Describe briefly the different steps in investing : Describe briefly the different steps in investing. What should an investor establish before developing and executing an investment program?
How to calculate expected cash flow probabilities : You are considering a 5-year investment project which is expected to cost $1, 000, 000. In each year, you have decided that there are 3 possible states

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd