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emaining the SO 29 QUESTION 14 Currently a company has fixed costs of 532.500, a contribution ratio of 65, and is selling its product for
emaining the SO 29 QUESTION 14 Currently a company has fixed costs of 532.500, a contribution ratio of 65, and is selling its product for 512 per the sale price rane how much less win the break even point in sales when compared to the current condition? Profit-PO-VQ) - Fixed expenses Profits Unit CMQ-Fixed expenses Profit (CM ratio ales) - Fixed expenses Unit CMP-V CM Ratio - Un CM/Unit P Unit sales to break even - Fixed expenses/CM per unit Dollar sales to break even - Fixed expenses/CM Ratio Unit sales to attain the target profit = (Target profit + Fixed expenses cm per unit Dollar sales to attain the target profit (Target profit Fixed expenses CM Ratio Margin of safety in dollars = Actual sales - Break-even sales Degree of operating leverage Contribution margin/Net operating income $14,411 $ 13,414 $17.500 $5,932 g 3
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