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Question

The Cornish Corporation has budgeted fixed costs of $125,000 and an estimated selling price of $16.50 per unit.

The contribution margin ratio is 40% and the company plans to sell 25,000 units in 2021.


Required:


(a) Compute the break-even point in dollars.

(b) Compute the margin of safety for 2021.

(c) Compute the expected operating profit for 2021.

Top Answer

Given, Budgeted Fixed Costs = $125,000 Selling Price = $16.50 Contribution margin = 40% Contribution per unit => 40% of... View the full answer

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