Accnt Hw P4-29 - 33% 17% It depends on the voloume of...

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Sales (15,000 units x $30 per unit)  $450,000  Variable Expense 315000 Contribution margin 135000 Fixed expense 90000 Net operating income  $45,000  Variable cost per unit 21 New variable cost per unit 12 Per unit Sales (15,000 units x $30 per unit)  $450,000   $450,000  Variable Expense 315000 180000 21 Contribution margin 135000 270000 9 Fixed expense 90000 225000 6 Net operating income  $45,000   $45,000  Degree of operating leverage 3 6 Break even point in dollar  $300,000   $375,000  Margin of safety in dollars  $150,000   $75,000  Margin of safety percentage
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Unformatted text preview: 33% 17% It depends on the voloume of sales. If you are able to sell more than now, you should purchase Sales (19,500 units x $30 per unit) $585,000 Variable Expense 409,500 Contribution margin $175,500 Fixed expense 180000 Net operating loss $(4,500) Break even point in units 20,000 No, I do not agree. This change will incur a net operating loss by $4,500 12 18 15 the new equipment; if not you should not purchase new equipment...
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Accnt Hw P4-29 - 33% 17% It depends on the voloume of...

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