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DO IT! 5 Zootsuit Inc, makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and

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DO IT! 5 Zootsuit Inc, makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable costs to be $42 per unit. Compute the following: So-42/56 257 a) break-even point in dollars using the contribution margin (CM) ratio: 320100 = (1280,000 6.2.5 b) the margin of safety and margin of safety ratio assuming actual sales are $1,382,400; and 11382,400 - 1280000 c) the sales dollars required to earn net income of $410,000 LOS 1382,400 =71. = 102,400 102,400 DO IT! 5 Zootsuit Inc, makes travel bags that sell for $56 each. For the coming year, management expects fixed costs to total $320,000 and variable costs to be $42 per unit. Compute break-even point in dollars using the contribution margin (CM) ratio. Contribution margin ratio=L Break-even sales in dollars = LO5

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