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A manufacturer predicts fixed costs of $502,000 for the next year. Its one product sells for $180 per unit, and it incurs variable costs of
A manufacturer predicts fixed costs of $502,000 for the next year. Its one product sells for $180 per unit, and it incurs variable costs of $126 per unit. Its target (pretax) income is $200,000. 1. Compute the contribution margin ratio. 2. Compute the dollar sales needed to yield the target income. 3. Compute the unit sales needed to yield the target income. 4. Assume break-even sales of 9,296 units. Compute the margin of safety (in dollars) if the company expects to sell 10,000 units
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