Cleveland Manufacturing, Inc.'s most recent income statement is presented below: $\begin{array}{ll}
\text { Sales } & \$ 450,000 \
\text { Cost of goods sold } & 200,000\\text { Gross margin } & 250,000 \
\text { Other op erating } & 196,000 \
\text { expenses } & \
\text { Operating income } & \$ 54,000
\end{array}$ Cleveland Manufacturing, Inc., has determined that $50,000 of cost of goods sold and $166,000 of operating expenses is fixed.
Required:
a. Compute the contribution margin.
b. Compute the contribution- margin percentage.
c. Compute the break- even volume in sales dollars.
d. Compute the current margin of safety.

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The Answer of Cleveland Manufacturing, Inc.'s most recent income statement is presented below: $\begin{array}{ll}
\text { Sales } & \$ 450,000 \
\text { Cost of goods sold } & 200,000\\text { Gross margin } & 250,000 \
\text { Other op erating } & 196,000 \
\text { expenses } & \
\text { Operating income } & \$ 54,000
\end{array}$ Cleveland Manufacturing, Inc., has determined that $50,000 of cost of goods sold and $166,000 of operating expenses is fixed.
Required:
a. Compute the contribution margin.
b. Compute the contribution- margin percentage.
c. Compute the break- even volume in sales dollars.
d. Compute the current margin of safety.

Cleveland Manufacturing, Inc Cleveland Manufacturing, Inc