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Current operating income for Bay Area Cycles Company is $ 5 6 , 0 0 0 . Selling price per unit is $ 1 0

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Current operating income for Bay Area Cycles Company is $56,000. Selling price per unit is $100, the
contribution margin ratio is 20%, and fixed expense is $228,000.
Required:
Calculate Bay Area Cycle's per unit variable expense and contribution margin. How many units are
currently being sold?
How many additional unit sales would be necessary to achieve operating income of $140,000?
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