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ABC Company produces and sells a single product with a price of LE. 50 per unit. The following estimated annual cost data have been prepared
ABC Company produces and sells a single product with a price of LE. 50 per unit. The following estimated annual cost data have been prepared for the upper and Inwer levels of the firm's relevant range of activity: Required: a-Classify each individual element of cost according to its behavior pattern, (fixed, variable, or mixed), and explain why you made each classification. b-Prepare the total cost function. c-Calculate the break-even point both in units and sales revenue - d-If all variable costs increase by 10%, what selling price must the company charge to cover this increase and still maintain the same contribution margin ratio. e- What level of sales (in units and pounds) would be required to earn a 4% profit at this level of sales and calculate the margin of safety
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