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A company produces and sells two products. It sells these products through different channels, and makes them in separate factories. The products have no shared
A company produces and sells two products. It sells these products through different channels, and makes them in separate factories. The products have no shared costs. This year there were units of each product sold. Contribution margin income statements follow.
Product Product
Sales $ $
Variable costs
Contribution margin
Fixed costs
Income $ $ For Product compute the contribution margin ratio, the breakeven point in dollar sales, and the degree of operating leverage. If sales in dollars increase by for this product, compute income. For product compute the contribution margin ratio, the breakeven point in dollar sales, and the degree of operating leverage. If sales in dollars increase by for this product, compute income.Product
and Product compute the contribution margin ratio, the breakeven point in dollar sales, and the degree of operating leverage.
If sales in dollars increase by for this product, compute income.
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