Question
8. Aaron Company provided the following data for next month: Selling price per unit $400 Variable manufacturing costs per unit $100 Fixed manufacturing costs per
8. Aaron Company provided the following data for next month: Selling price per unit $400 Variable manufacturing costs per unit $100 Fixed manufacturing costs per unit $ 80 Variable selling costs per unit $ 60 Fixed selling costs per unit $ 40 Expected production and sales 1,800 units Required: A. What is contribution margin per unit? B. What is the contribution margin ratio? C. What is the break-even point in units? D. What are the sales in dollars needed to obtain an operating income of $20,000? E. what is the breakeven point in sales dollars? F. What is margin of safety in dollars? G. What is the degree of operating leverage if aaron company slls 1800 units?
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