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iv. Degree of operating leverage. Estimated percentage increase and decrease in net operating income of a 10% increase in sales and a 5% decrease in sales. v.

iv. Degree of operating leverage. Estimated percentage increase and decrease in net operating income of a 10% increase in sales and a 5% decrease in sales. v.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 72P: Moleno Company produces a single product and uses a standard cost system. The normal production...
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i need only (iv and v) last two parts
2. A company manufactures and sells a single product which has the following cost and selling price structure. Particular Tk/unit Tk/unit Selling Price Direct Material 120 22 Direct Labor Variable Overhead 36 14 Fixed Overhead 12 84 36 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for next month are 2,200 units. You are required to calculate: Breakeven point, in sales units per month. ii. The margin of safety and interpret the result. iii. The sales required to achieve profit of Tk. 96,000 in a month. iv. Degree of operating leverage. V. Estimated percentage increase and decrease in net operating income of a 10% increase in sales and a 5% decrease in sales.
Transcribed Image Text:2. A company manufactures and sells a single product which has the following cost and selling price structure. Particular Tk/unit Tk/unit Selling Price Direct Material 120 22 Direct Labor Variable Overhead 36 14 Fixed Overhead 12 84 36 Profit per unit The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for next month are 2,200 units. You are required to calculate: Breakeven point, in sales units per month. ii. The margin of safety and interpret the result. iii. The sales required to achieve profit of Tk. 96,000 in a month. iv. Degree of operating leverage. V. Estimated percentage increase and decrease in net operating income of a 10% increase in sales and a 5% decrease in sales.
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