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Dumbledore Corporation forecasts that next year it can sell 25,000 units of its toaster ovens (for $1,000,000) in the open market. The expected contribution margin
Dumbledore Corporation forecasts that next year it can sell 25,000 units of its toaster ovens (for $1,000,000) in the open market. The expected contribution margin ratio is 45%. Fixed costs are estimated to be $375,000. Required: a) What is the selling price per unit? b) Calculate the contribution margin if 25,000 units are produced and sold. c) Calculate the contribution margin per unit. d) If the company decides to sell its products in the open market, determine the amount of units required to break even. e) Determine the operating income if 25,000 units are produced and sold. f) Determine the amount of revenue that needs to be generated to yield an operating income of $100,000 Current sales are $20,000. If breakeven sales are $16,000, what is the margin of safety percentage? non
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