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a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Acct 102 - Please Do All Subparts

The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit Variable cost per unit Fixed costs per year 45 27 247,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio Break even sales dollars b Margin of safety (in dollars)
Transcribed Image Text:The following information relates to the only product sold by Mastrolia Manufacturing. Sales price per unit Variable cost per unit Fixed costs per year 45 27 247,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio Break even sales dollars b Margin of safety (in dollars)
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