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1-8 if possible Problem: Guitars by Dave guitar are $1,750 and the total fixed costs are $180,000 crafts an acoustic guitar that sells for $2,500.
1-8 if possible
Problem: Guitars by Dave guitar are $1,750 and the total fixed costs are $180,000 crafts an acoustic guitar that sells for $2,500. The variable costs per 1. The unit contribution margin is 2. The contribution margin (percentage) ratio is 3. The variable expense ratio is 4. The break-even point in dollars is 5. How many guitars must Guitars by Dave sell in order to earn a $120,000 profit? 6. What is Guitars by Dave's margin of safety in dollars at the $120,000 profit level? 7. What is Guitars by Dave's degree of operating leverage at the $120,000 profit level? 8. Estimate the impact on net operating income of a 6% increase in sales. (State as a percentage) Step by Step Solution
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