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Assume that the sales mix was 50% 12 pizza and 50% 16 the break-even point with that in part a. Why is it so Ptzza.

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Assume that the sales mix was 50% 12" pizza and 50% 16 the break-even point with that in part a. Why is it so Ptzza. Co PR 21-6B contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Belmain Co. expects to maintain the same inventories at the end of 2016 ning of the year. The total of all production costs for the year as at the be equal to the cost of goods sold. With this in mind, the various de heads were asked to submit estimates of the costs for their departments during the report of these estimates is as follows: Estimated Estimated Na Fixed Cost (per Production costs: Direct materials $5000 Direct labor 350,000 Factory overhead Selling expenses: Sales salaries and commissions 340,000 116,000 Advertising 4,000 Travel Miscellaneous selling expense Administrative expenses: 325,000 Office and officers salaries 6,000 Supplies 8,700 Miscellaneous administrative expense $1,152,000 Total sales It is expected that 12,000 units will be sold at a price of $240 a unit. Maximum within the relevant range are 18,000 units. Instructions 1. Prepare an estimated income statement for 2016. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. 4. Construct a cost-volume-profit chart indicating the break-even sales. 5. What is the expected margin of safety in dollars and as a percentage of sales? 6. Determine the operating leverage. rojects cp 1 Ethics and professional conduct in business

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