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Brooklyn Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units
Brooklyn Enterprises prepared the following contribution format income statement based on a sales volume of 3,000 units (the relevant range of production is 1,000 units to 5,000 units): Contribution Margin Income Statement Sales $ 54,000 Variable expenses 30,000 Contribution margin 24,000 Fixed expenses 16,000 Net operating Income $ 8,000 Required: Show all calculations! (Answer each question independently and always refer to the original data unless instructed otherwise. Round all uneven answers to 2 decimal places.) Show all calculations
- How many units must be sold to achieve a target profit of $9,000?
- What is the margin of safety in dollars?
- If fixed costs increase by 12%, what will be the new breakeven point in units?
- What is the degree of operating leverage?
- Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 20% increase in sales?
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