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 Breakeven 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 what will be the change in operating profit?
b If the sales volume decreases by what will be the change in operating profit?
g If the per unit variable production costs increase by and fixed selling and administrative costs increase by what will be the new breakeven point in dollar sales?
h If the company is facing a tax rate, how much sales revenue they have to make in order to earn an aftertax profit of $
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