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3 4 The RMC Company specializes in preparing Arabian dinners that it freezes and ships to restaurants in the Gaza area. When a diner orders

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3 4 The RMC Company specializes in preparing Arabian dinners that it freezes and ships to restaurants in the Gaza area. When a diner orders an item, the restaurant heats and serves it. The budget data for 2011 ares Product Chicken Beef Selling price to restaurant $5 $7 Variable expenses Number of units 250,000 125,000 The company prepares the items in the same kitchens, delivers them in the same trucks, and so forth Therefore, decisions about the individual products do not affect the fixed costs of 5735,000 Required: 1. Compute the planned net income for 2011 2. Compute the break-even point in units, assuming that the company maintains its planned sales mix 3. Compute the break-even point in units if the company sells only chicken 4. Compute the degree of operating leverage and if sales increase by 5%, net income will increase by how much? 5. If the company sell 400,000 units, what is the margin of safety? 1-5 ( Complete the required from 1-5 9)

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