Let us assume that ABC Company is a manufacturing company producing a single unit of product....

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Let us assume that ABC Company is a manufacturing company producing a single unit of product. Break-even computations will be showed on the basis of the data given below: Sales price per unit = $5,000 Variable cost per unit = $1,000 Total fixed cost = "$400,000 Required 1- Calculate the contribution margin per unit 2- Calculate the contribution margin ratio 3- Calculate the break-even point in units 4- Calculate the break-even point in $ Expected profit after tax = $120 The rate of income tax = 10% 5- Calculate the profit before tax 6- Calculate the break-even point in units and " if the profit is expected to be $100,000. 7- Calculate the margin of safety (and its percentage) if the total amount of actual sales is equal to $600,000. 8- Assume that fixed and variable costs remain constant(fixed cost: "400,000 Variable cost: $1,000), calculate the break-even point in units when the selling price will increase by 10 percent. Let us assume that ABC Company is a manufacturing company producing a single unit of product. Break-even computations will be showed on the basis of the data given below: Sales price per unit = $5,000 Variable cost per unit = $1,000 Total fixed cost = "$400,000 Required 1- Calculate the contribution margin per unit 2- Calculate the contribution margin ratio 3- Calculate the break-even point in units 4- Calculate the break-even point in $ Expected profit after tax = $120 The rate of income tax = 10% 5- Calculate the profit before tax 6- Calculate the break-even point in units and " if the profit is expected to be $100,000. 7- Calculate the margin of safety (and its percentage) if the total amount of actual sales is equal to $600,000. 8- Assume that fixed and variable costs remain constant(fixed cost: "400,000 Variable cost: $1,000), calculate the break-even point in units when the selling price will increase by 10 percent.

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1 To calculate the contribution margin per unit subtract the variable cost per unit from the sales price per unit Contribution margin per unit Sales p... View the full answer