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CE'P Analysis- 1Various A. A. company sells a single product. The product has a selling price of$100 per unit, variable expenses of 00% of sales.
CE'P Analysis- 1Various A. A. company sells a single product. The product has a selling price of$100 per unit, variable expenses of 00% of sales. and its fixed expenses total $1501000 per year. 1. 1|r'll'hat is the company's contribution margin ratio? 2. 1|What is its breakeven point? [units 81 dollars] B. A company is the exclusive distributor of a product that sells For $40 per unit and has a CM ratio of30%. The company's xed expenses are $180,000 peryear. They plan to sell 16,000 units this year. 1. What are the variable expenses per unit? 2. Nut is the breakeven point in units and sales dollars? 3. Nut sales level in units and sales dollars is required to earn an annual profit of 560.000? 4. if sales increase by $100,000, how much. in dollars. will net operating income increase? 5. If the company _i_s_ _abl_e_1_:o reduce its variable expenses by $4 per unit. what is the new break-even point in units and sales dollars
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