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Magnolia Company's income statement for the most recent year appears below. Sales (45,000 units) $1,350,000 Less: variable expenses 750,000...

Magnolia Company's income statement for the most recent year appears below.

Sales (45,000 units)

$1,350,000

Less: variable expenses

750,000

Contribution margin

600,000

Less: fixed expenses

375,000

Net operating income

$225,000


 

Required:

Calculate the unit contribution margin.

Calculate the the break-even point in dollars.

If the company desires a net operating income of $290,000, how many units must it sell?

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