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18-4 Presto Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to
18-4 Presto Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $18 per unit. (a) Compute the break-even point in dollars using the contribution margin (CM) ratio. Break-even point $ (b) Compute the margin of safety ratio assuming actual sales are $800,000. (Round margin of safety ratio to 2 decimal places, e.g. 10.50%.) Margin of safety % (c) Compute the sales dollars required to earn net income of $140,000. Required sales $
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