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2) Assume the company adds a third product, Bronze. Each Bronze will sell for $100 and variable expenses per unit will be $90. Sales are

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2) Assume the company adds a third product, Bronze. Each Bronze will sell for $100 and variable expenses per unit will be $90. Sales are anticipated to be 20,000 units. Fixed costs will remain unchanged for the company. a) Prepare a contribution form income statement displaying dollar amounts and percentages for each product and the company as a whole. b) Compute the break-even point for the company. Calculate this company's margin safety both in dollars and as a percent. 3) Bronze has added sales to the company. Why has the break-even point increased with the addition of the new product? Break-Even Analysis & Margin of Safety (with more than one product) P6-B The Medal Company make two products, Gold and Silver. Sales and cost data for these products follow. Gold Silver Sales (in units) 100,000 10,000 Selling price per unit $150 Variable expenses per unit 12 100 $25 Fixed expenses, for the company, are $900,000

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