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13. Breakeven and target profit points (3 points) Portland Antique Stores Weaponry is owned and operated by a craftsman who makes replicas of historic firearms

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13. Breakeven and target profit points (3 points) Portland Antique Stores Weaponry is owned and operated by a craftsman who makes replicas of historic firearms for museums. He is currently producing 40 flintlock muskets per month. Data are as follows: Sales price per unit $800 Variable cost per unit $480 Total fixed costs $10,240 Compute: 1. Contribution margin per unit 2. Contribution margin ratio 3. Number of units to sell at the breakeven point 4. Operating income generated at the current 40 flintlock musket sales volume 5. If the company desires a target profit of 20% greater than the current operating income (answer #4), compute: a. Total sales dollars at the target profit point b. Margin of Safety in dollars at the target profit point

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