Question: 4. Darwin Inc, sells a particular textbook for $36. Variable expenses are $29 per book At the current volume of 58,000 books sold per year
4. Darwin Inc, sells a particular textbook for $36. Variable expenses are $29 per book At the current volume of 58,000 books sold per year the company is just breaking even. Given these data, the annual fixed expenses associated with the textbook total: A. $406,000 B. $2,088,000 C. $2,494,000 D. $1,682,000 Michael Scott Paper Company has a targeted operating income of $518,000 for the upcoming year. The selling price of its single product is $10.50 each, while the variable cost per unit is $12.50. Fixed costs total $182,000 Calculate the following: a. Contribution margin per unit b. Breakeven point in units and Dollars C. Units to be sold to earn the targeted operating income and Sales to earn the targeted income d. Calculate the Company's Margin of Safety in Units and Dollars e. Calculate the Company's Operating Leverage f. Determine how much net income would change if sales increased by 15%
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