Question: Sales$ 3 , 0 0 0 , 0 0 0 Less variable expenses 1 , 8 0 0 , 0 0 0 Contribution margin 1
Sales$Less variable expensesContribution marginLess fixed expensesNet income$The company has no beginning or ending inventories and produced and sold units during the month.Required:a What is the company's contribution margin ratio?b What is the company's breakeven in units?c If sales increase by units, by how much should net income increase?d How many units would the company have to sell to attain target profits of $e What is the company's margin of safety in dollars?f What is the company's degree of operating leverage?
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