Business, 18.03.2021 01:10 rjennis002

Sales price per unit:(current monthly sales volume is 120,000 units). . . . $25.00 Variable costs per unit:
Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.60
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7.00
Variable manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.40
Variable selling and administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . $1.90
Monthly fixed expenses:
Fixed manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $241,900
Fixed selling and administrative expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . $327,900

Required:
a. What is the company's contribution margin per unit?
b. What would the company's monthly operating income be if the company sold 150,000 units?
c. What is the company's current operating leverage factor (round to two decimals)?

Answers: 2

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Sales price per unit:(current monthly sales volume is 120,000 units). . . . $25.00 Variable costs p...

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