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Monthly breakeven points in units – 12000
Monthly breakeven points in dollars $ 360,000
Contribution Margin at breakeven point = 60%
17,000 units are to be sold to make a profit of $ 90,000
Margin of safety in dollars = 90,000
Margin of safety in % = 20%
If the sales increase by $50,000, the Contribution Margin ratio will be 60% and monthly Net Operating Income will increase by $30,000 77 1.
Using Variable Costing Contribution Format NOI = $15,000 2.
Difference = 20,000 ...
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This note was uploaded on 09/08/2011 for the course ACCOUNTING AC505 taught by Professor Terrymulder during the Spring '09 term at Keller Graduate School of Management.
- Spring '09
- Managerial Accounting