Question: Question 5: (total 8 marks) XEMA Company estimates that variable costs will be 60% of sales and fixed costs will total $900,000. The selling price

Question 5: (total 8 marks) XEMA Company estimates that variable costs will be 60% of sales and fixed costs will total $900,000. The selling price of the product is $5, and 500,000 units will be sold. Instructions: Using the contribution margin: (a) Compute the break-even point in units and dollars. (3marks) (C) Compute the margin of safety in dollars and as a ratio. (3 marks) (d) Compute net income. (2 marks)

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