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Current operating income for Bay Area Cycles Co. is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense

Current operating income for Bay Area Cycles Co. is $46,000. Selling price per unit is $100, the contribution margin ratio is 25%, and fixed expense is $184,000.

1.

Calculate Bay Area Cycles break-even point in units and total sales dollars.

2. Calculate Bay Area Cycles margin of safety and margin of safety ratio.

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