Problem 6-23 CVP Applications; Contribution Margin Ratio: Degree
of Operating Leverage [LO6-1, LO6-3, LO6-4, LO6-5, LO6-8]
Feather Friends, Inc., distributes a high-quality wooden
birdhouse that sells for $80 per unit. Variable expenses are $40.00
per unit, and fixed expenses total $160,000 per year. Its operating
results for last year were as follows:
Sales
$
2,080,000
Variable expenses
1,040,000
Contribution margin
1,040,000
Fixed expenses
160,000
Net operating income
$
880,000
Required:
Answer each question independently based on the original
data:
1....