Question: a ) Unit contribution margin b ) Contribution margin ratio. c ) Break - even in dollar sales. d ) Margin of safety percentage. e

a) Unit contribution margin
b) Contribution margin ratio.
c) Break-even in dollar sales.
d) Margin of safety percentage.
e) Operating leverage.
f) Use your calculation of operating leverage, answer the following questions:
a. If the sales volume increases by \(10\%\), what will be the change in operating profit?
b. If the sales volume decreases by \(20\%\), what will be the change in operating profit?
g) If the per unit variable production costs increase by \(15\%\), and fixed selling and administrative costs increase by \(12\%\), what will be the new break-even point in dollar sales?
h) If the company is facing a \(25\%\) tax rate, how much sales revenue they have to make in order to earn an after-tax profit of \(\$ 600,000\)
a ) Unit contribution margin b ) Contribution

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