Reference no: EM132740840

Questions -

Q1. Miranda Co. produces washing machines. The following is a performance and cost summary:

Per Unit Percent

Sales price $540 100.00

Variable costs 342 63.33

Unit contribution margin $198 36.67

Assume that Miranda Co. is currently selling 660 units per month and monthly fixed costs are $80,600.

Miranda Co.'s degree of operating leverage (DOL) currently would be (round your answer to three decimal places):

a. 3.393.

b. 2.168.

c. 2.881.

d. 2.609.

e. 2.763.

Q2. Roger Corp. planned to sell 22,600 products. Total fixed costs were expected to be $12,143,000. The selling price was $3,300 per unit, and the variable costs were $1,440 per unit.

What is Roger's margin of safety (MOS) in units (rounded up to nearest whole number)?

a. 19,851.

b. 15,941.

c. 16,071.

d. 21,161.

e. 17,241.