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2. A company has the following information: Unit sales 22,300 Sales price per unit $ 160.00 Variable costs per unit $ 60.00 Fixed costs $

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2. A company has the following information: Unit sales 22,300 Sales price per unit $ 160.00 Variable costs per unit $ 60.00 Fixed costs $ 833,000 *** Round calculations to two decimals, if applicable. *** a. What is the company's contribution margin per unit (3 points)? Contribution Margin /unit saves 2230000 122300 - 100 b. What is the company's total contribution margin (3 points)? Tolal Sales = 22.300 TUO - 3568 000 Voviable cost = 22, 300 * 60 =1338000 Sales Variable cost= contribution margin 3568000 - 1338000 2,230,000 c What is the company's operating income (3 points)? Contribution Mangin - Fixed costs operating in comme 2230000 --833,000 = 1397000 d. What is the company's margin of safety in units (5.5 points)? unit contribution Margin Sales Price per Unit - Vavianie cost der Unit 1 OO LO e. If the company had a target operating income of $1,060,000, what would be the target sales in dollars (5 points)? f. The company is considering an advertising campaign at a cost of $142,190. How many additional units would the company need to sell to cover the cost of the campaign (3 points)? & If the advertising campaign in #10-f above would increase sales by an estimated 3,130 units, how much would the company's income increase or decrease (5 points extra credit)

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