Homework Answers
1)
| Sales | 68.60 |
| Variable Cost | 44.90 |
| Contribution Margin | 23.70 |
| Fixed Cost | 7.10 |
| Net Income | 16.60 |
2. Contribution Margin percentage = 23.70/68.60
=34.55%
3.Break even Point = 7.10/34.55%
=20.55 Billion
4. Current Margin of Safety Percentage = (68.60 - 20.55)/68.60
=70.04%
5.Operating leverage factor = 23.70/16.60
=1.43
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