I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a target profit of $7,500? K. What is the margin of safety in dollars? What is the margin of safety percentage ? L. What is the degree of operating leverage?
I. What is the break- even point in dollar sales? J. How many units must be sold to achieve a target profit of $7,500? K. What is the margin of safety in dollars? What is the margin of safety percentage ? L. What is the degree of operating leverage?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
I. What is the break- even point in dollar sales?
J. How many units must be sold to achieve a target profit of $7,500?
K. What is the margin of safety in dollars? What is the margin of safety percentage ?
L. What is the degree of operating leverage?

Transcribed Image Text:Part 2.
Bhiner Company prepared the following contribution format income statement based
on a sales volume of 1,000 units (the relevant range of production is 500 units to
1,500 units).
Sales
$25,000
Variable expenses
10.000
ontribution margin
15,000
+Fixed expenses
8.000
Net operating income
$ 7.000
Required:
(Answer each question independently and always refer to the original data unless
instructed otherwise.) (Show all work/calculations. No credit will be given without
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