Erickson, Inc makes student book bags that sell for $20 each For the coming year, management expects fixed costs to be $225,000 Variable costs are $14 per unit Instructions (a) Compute break even sales using the contribution margin ratio (3 marks) (b) Compute margin of safety ratlo assuming actual sales are 5937,500 (2 marks) (c) Compute the sales required to earn net income of $150,000, using the mathematical equation (1 mark) In applying the high low method, what is the fixed cost Month January February March April 80,000 50 000 70,000 90 000 Total cost 5192 000 160 000 152 000 Select one 5100 000 b 335 000 572000 0 5281000 Mond Volee message 003

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Erickson, Inc makes student book bags that sell for $20 each  For the coming year, management expects fixed costs to be $225,000  Variable costs are $14 per unit  Instructions (a) Compute break even sales using the contribution margin ratio  (3 marks) (b) Compute margin of safety ratlo assuming actual sales are 5937,500 (2 marks) (c) Compute the sales required to earn net income of $150,000, using the mathematical equation  (1 mark) In applying the high low method, what is the fixed cost  Month January February March April 80,000 50 000 70,000 90 000 Total cost 5192 000 160 000 152 000 Select one 5100 000 b  335 000 572000 0 5281000 Mond Volee message 003

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Erickson, Inc makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $225,000. Variable costs are

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