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Arya's Alchemy produces mineral based face masks. The company has the following financial information: The company's sales price is $20 per unit. The variable costs

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Arya's Alchemy produces mineral based face masks. The company has the following financial information: The company's sales price is $20 per unit. The variable costs of producing masks is $6 per unit. The company expects to have fixed costs of $10,000 next year. The company expects to sell 1,000 masks. Assume no taxes. Calculate the breakeven point in units: 714.29 units need to be sold. Calculate the breakeven point in dollars: 14.285.71 worth of product need to be sold. How many units must the company sell to reach a target proft of $25,000? 2,500 Prepare a budgeted contribution format income statement. The contribution margin is: 14,000 and the operating income is: 4,000o Compute the margin of safety in both dollar and percentage terms. 5714.29 dollar amount sales could drop before the company starts to lose money. the margin of safety as a percentage. Compute the degree of operating leverage If sales increase by 20% in the following year, how much would net income increase (use the is the 28.57% is 3.5 . degree of operating leverage to compute your answer). Net income would increase by worth of product need to be sld. Calculate the breakeven point in dollars: 14.285.71 500 . How many units must the company sell to reach a target profnt of $25,000?2 Prepare a budgeted contribution format income statement. The contribution margin is: 4,000 and the operating income is: 14,000 Compute the margin of safety-in both dollar and percentage terms dollar amount sales could drop before the company starts to lose money. the margin of safety as a percentage. 5714.29 is the . 28.57% is 3.5 . Compute the degree of operating leverage: . If sales increase by 20% in the following year, how much would net income increase (use the degree of operating leverage to compute your answer). Net income would increase by 2800 and the new net income would be 6800

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