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can you help me find number 4 please? Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for
can you help me find number 4 please?
Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (58,000 units @ $17.00) $986,000 Total variable cost 631,040 Contribution margin $ 354,960 Total fixed cost 342,720 Operating income $ 12,240 Required: 1. Compute the break-even sales dollars. 952,000 2. Compute the margin of safety in sales dollars. $ 34,000 v 3. Compute the degree of operating leverage. 29 4. Compute the new operating income if sales are 20% higher than expected Step by Step Solution
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