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Unformatted text preview: Fixed expenses Profits o : = CM Method Unit sales to attain target profit Fixed + expenses Target profitUnit contribution margin o : = CM Method Dollar sales to attain target profit Fixed + expenses Target profitCM ratio Margin of Safety = ( ) -Total budgeted or actual sales Break even sales o Margin of Safety Percentage = Margin of safety in dollarsTotal budgeted or actualsales in dollars Degree of Operating Leverage = Contribution marginNet operating income...
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- Spring '07
- Managerial Accounting