Li-Wei Inc. recorded the following information for its main product: ...
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Accounting
Li-Wei Inc. recorded the following information for its main product:
| Selling price per unit | $ | 370 | ||
| Costs per unit (at the normal capacity of 39,900 units): | ||||
| Direct material | 135 | |||
| Direct labour | 74 | |||
| Variable overhead | 54 | |||
| Fixed overhead | 54 | |||
| Sales Commission | 10.0 | % 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? (Round "Degree of operating leverage" to 2 decimal places and the rest to the nearest whole number.)
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