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1. Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month: Sales $ 17,600 Variable expenses 9,680
1. Evan's Electronics Boutique sells a digital camera. The following information was reported for the digital camera last month:
Sales | $ | 17,600 |
Variable expenses | 9,680 | |
Contribution margin | 7,920 | |
Fixed expenses | 3,600 | |
Net operating income | $ | 4,320 |
Evan's margin of safety in dollars and percentage are closest to:
2.
Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.
Sales (8,800 units) | $ | 528,000 |
Variable expenses | 290,400 | |
Contribution margin | 237,600 | |
Fixed expenses | 211,700 | |
Net operating income | $ | 25,900 |
If the company sells 9,200 units, its net operating income should be closest to:
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