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

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Accounting

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

Sales for month of February 4,000

Variable manufacturing cost per unit $9.75

Sales price per unit $42.50

Fixed manufacturing overhead cost (per month for controllers) $81,000

Variable selling and administrative expenses per unit $3.00

Fixed selling and administrative expenses (per month for controllers) $13,122

Contribution Margin Ratio 70 %

Degree of Operating Leverage 4.78

Break-even Point in Dollars $134,460

Margin of Safety Ratio 20.9 %

What does this information suggest if Waterways cost structure is the same for the company as a whole?

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