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Cost Volume Prot Analis Daniels Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The...

Screen Shot 2018-12-03 at 10.01.42 AM.png1.    Compute the company's break-even point in both units and sales dollars.

 

 

 

 

 

 

2.  Refer to the original data. Assume next year management wants the company to earn a profit of at least $90,000. How many units will have to be sold to meet this target profit?

 

 

 

 

3.  Refer to the original data. Compute the company's margin of safety in both dollar and percentage form.

 

Screen Shot 2018-12-03 at 10.01.42 AM.png

Cost Volume Profit Analfiis
Daniels Company manufactures and sells a specialized cordless telephone for high electromagnetic radiation environments. The company’s contribution format income statement for the most recent
year is given below: ——_
Sales (20,000 units) $1 ,200,000_
L._900 000 Contfibutiton margin $300,000 .55
L40 000 _
Net operating income $60,000 _

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Question 1  The company's break-even point in units= 16 000 units The company's break-even point... View the full answer

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