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Currently, Reagan produces and sells 20,000 Tuff-Pups annually. Required: 1. How many Tuff-Pups must be sold to break even? units 2. If Reagan wants to
Currently, Reagan produces and sells 20,000 Tuff-Pups annually. Required: 1. How many Tuff-Pups must be sold to break even? units 2. If Reagan wants to earn $83,200 in profit, how many Tuff-Pups must be sold? units Prepare a variable-costing income statement to verify your answer. result in break-even units of 9,750. If required, round your intermediate computations and final answer to the nearest cent. I 4. What is Reagan's current contribution margin and operating income? Calculate the degree of operating leverage. Round your answer to three decimal places. final percentage answer to two decimal places (for example, 45.555% would be entered as "45.56"). % What would the new total operating income for next year be? Round your answer to the nearest dollar. \& answer these questions. (See Exhibits 2.5 and 2.6, for a review of data analytic types. Note: More than one analytic type might apply.) analysis will help Reagan understand the break-even point and units needed to earn a target profit. analysis helps Reagan to understand what happens when variables are changed. Data analytics would be used in Requirement 3 as Reagan decides to lower the break-even point and uses the analysis to determine why the breakeven is higher than desired
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