Question: 5. Peter Company's income statement for the year 2020 was as follows. Sales (40,000 Units). Variable expenses...... Contribution margin... Fixed Expenses. Net Operating Income

5. Peter Company's income statement for the year 2020 was as follows.

5. Peter Company's income statement for the year 2020 was as follows. Sales (40,000 Units). Variable expenses...... Contribution margin... Fixed Expenses. Net Operating Income L 11. III. IV. V. VL Total (S) 22,80,000 13,20,000 9.60.000 3.55.000 6.05.000 Per Unit (S) 57 33 Requirements: Compute the company's CM ratio & Variable expense ratio. Compute the company's Break-Even point in both units & sales dollars. Compute the margin of safety in dollars & in percentage. 10 Using the equation method solve for the unit sales that are required to earn a target profit of $1,70,000. Compute the company's degree of operating leverage at the present level of sales. Prepare a new contribution format income statement showing 12% increases in sales assuming for next year.

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