Question
A company sells Product X for $30 per unit. The Direct Material Cost, Direct labor cost, and Variable MFO costs total $21 per unit. Fixed
A company sells Product X for $30 per unit. The Direct Material Cost, Direct labor cost, and Variable MFO costs total $21 per unit. Fixed costs to product the product are $135,000.
How many units of Product X must the company sell in order to break even?
What is the contribution margin ratio for product X?
How many units of Product X must be sold in order for the company to earn a $50,000 profit?
If the company was selling 25,000 units what would be its margin of safety in dollars?
If the company is selling 25,000 units, what would be the operating leverage?
If the company's sales of 25,000 units declinded by 20%, what would be the % decrease in its income from operations?
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