How evaluate the contribution margin ratio

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A company produces digital memory hand bands. Their sales for month of June: 4,000 Variable manufacturing cost per unit: $9.75, sales price per unit: $42.50 Fixed manufacturing overhead cost per month: $80,000 Variable selling and administrative expenses per unit: $3.00 Fixed selling and administrative expenses per month: $12,556

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Question (i) Determine the contribution margin ratio (ii) the degree of operating leverage (iii)the break-even point in dollars (iv)the margin of safety ratio

Reference no: EM132596612

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