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2. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites: Sales Variable expenses Fixed expenses $30,000
2. ABC company prepared the following contribution format income statement based on a sales volume of 1,000 unites: Sales Variable expenses Fixed expenses $30,000 $15,000 $10,000 2a. Calculate contribution margin per unit, contribution margin ratio, and variable expense ratio. 2b. What would be the percentage increase in net operating income if sales volume increases by 40%? 2c. If the selling price increases by 10% and the variable expenses increase 20%, what would be the net operating income? 2d. What is the margin of safety percentage? At what "percentage of sale volume decrease" the company would experience zero net operating income?
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