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A relatively low margin of safety ratio (M05%) for a product is usually an indication that the product His a high contribution margin W riskier

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A relatively low margin of safety ratio (M05%) for a product is usually an indication that the product His a high contribution margin W riskier than a pepdoct with a Righer marion of safety carlo, king money Ostes risky than a product with a higher margin of safety ratio Melissa Manager expects next year's degree of operating leverage to increase. Which of the following statements is consistent with Melissa's expectations? Next year's variable costs per unit are expected to decrease Next year's setores price is expected to increase Next year's activity or volume velis buted to be lower than this year's Next year's total teed costs are expected to be lower than this Dos Corporation provided the following information regarding it only product Sales price per unit $60 Direct matered $160.000 Direct labor costs incurred $230.000 Variable manufacturing overhead costs incurred $150.000 Variable selling and administrative costs incurred $60,000 Fixed manufacturing overhead costs incurred $80,000 Fixed selling and administrative costs incurred $10.000 Units produced and told 12000 Asume no begleuning inventory Assuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1.000 units at a sales price of 555 per unit assuming additional food manufacturing overhead coats of $7.000 would be incurred? Operatione income decremer 387.000 Operating income incremes 52.000 Operating income decreases 52.000. Operating income decreases 35.000

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