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Cost-Volume-Profit Analysis Problem 1 - Show work! (28 points) Use the following data to answer questions a through h. Selling Price per Unit $36 Variable
Cost-Volume-Profit Analysis Problem 1 - Show work! (28 points) Use the following data to answer questions "a" through "h". Selling Price per Unit $36 Variable Cost per Unit $16 Fixed Cost $380,000 Plant Capacity is 32,000 units. a) Determine the break-even point in units. b) Determine the break-even point in dollars. c) Without resorting to calculations, what is the Total Contribution Margin at the break-even point? d) Determine the targeted sales in units and dollars for a $90,000 profit. e) Determine the Margin of Safety in dollars. f) Determine the Margin of Safety percentage (round to a tenth of a percent). g) Determine the new targeted sales in units if the selling price was decreased to $31. e) Determine the Margin of Safety in dollars. f) Determine the Margin of Safety percentage (round to a tenth of a percent). g) Determine the new targeted sales in units if the selling price was decreased to $31. Is it feasible? YES or NO. If feasible, would you recommend this action? h) Determine the new targeted sales in units if the variable cost per unit was increased to $19, and the fixed costs were decreased to $350,000 (disregard the information in "g".) Is it feasible? YES or NO If feasible, would you recommend this action? EXTRA CREDIT (Up to 3 points) What is the maximum profit that can be made from this product based on the original data
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