Endless Mountain Company manufactures a single product that is popular with outdoor recreation enthusiasts. The company sells its product to retailers throughout the northeastern quadrant of the United States. It is in the process of creating a master budget for 2022 and reports a balance sheet at December 31, 2021 as follows: Required:
1. Calculate the following budgeted figures for 2022:
a. The total fixed cost.
b. The variable cost per unit sold.
c. The contribution margin per unit sold.
d. The break-even point in unit sales and dollar sales.
e. The margin of safety.
f. The degree of operating leverage
2. Prepare a budgeted variable costing income statement for 2022. Stop your computations at net operating income.

1. a. Total Fixed Cost $468,000

b. Variable cost per unit sold $1.25

c. Contribution margin per unit $10.5

d. Break even point in unit sales 44,571 units

e. Margin of Safety 10.8%

f. Degree of operating Leverage  2.3%

Explanation:

Margin of Safety :  Current sales in units - Break even Sales in units

Break even Point in unit sales  = Fixed cost / contribution margin

Degree of operating leverage = % change in operating leverage / % change in sales

{[667088 - 525218 ] / 667,088]} / {[55,000 - 50,000] / 55,000}

21 / 9.09 = 2.3%

Contribution Margin : Selling price per unit - Variable cost per unit

$32 - $21.5

2. Income Statement 2022

Sales 2,848,000

Cost of goods sold 1,998,732

Gross Margin 849,268

Selling and administrative cost 579,250

Operating profit 270,018

Interest Expense 9,642

Net profit 260,376

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.

answer: e

explanation: