You are provided with the following data. Unit sales Selling price per unit 40,000 units $...

 

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You are provided with the following data. Unit sales Selling price per unit 40,000 units $ 60 per unit Variable expenses per unit Fixed expenses $ 36 per unit $ 480,000 $ 1,520,000 Target Profit Required: Compute the CM ratio and variable expense ratio. Compute the break-even. Compute the target profit. Compute the margin of safety with the original data. Compute the degree of operating leverage with the original data. Use the Degree of Operating Leverage to determine the new Net Operating Income if sales increase by: 11% You are provided with the following data. Unit sales Selling price per unit 40,000 units $ 60 per unit Variable expenses per unit Fixed expenses $ 36 per unit $ 480,000 $ 1,520,000 Target Profit Required: Compute the CM ratio and variable expense ratio. Compute the break-even. Compute the target profit. Compute the margin of safety with the original data. Compute the degree of operating leverage with the original data. Use the Degree of Operating Leverage to determine the new Net Operating Income if sales increase by: 11%

Answer rating: 100% (QA)

1 Contribution Margin CM Ratio CM Ratio Selling Price per Unit Variable Expenses per Unit Selling Pr... View the full answer