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1. XYZ Company produces and sells a single product. The company's income statement for the most recent month is given below: Per unit 40 Sales
1. XYZ Company produces and sells a single product. The company's income statement for the most recent month is given below: Per unit 40 Sales (6,000 units) Variable Expenses Contribution Margin Fixed Expenses Operating Income Total 240,000 144,000 96,000 72,000 24,000 24 16 a. Compute the company's monthly break-even point in units of product. b. Compute the margin of safety of the company as a dollar value and as a percentage. c. Compute the operating leverage of this company. For each of the questions above you need to show your computations
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