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Eta Manufacturing Ltd. Scenario: Cost-Volume-Profit Analysis Data: Sales Price per Unit: $50 Variable Cost per Unit: $30 Fixed Costs: $100,000 Requirements: Calculate the contribution margin

Eta Manufacturing Ltd.

Scenario: Cost-Volume-Profit Analysis

Data:

  • Sales Price per Unit: $50
  • Variable Cost per Unit: $30
  • Fixed Costs: $100,000

Requirements:

  1. Calculate the contribution margin ratio.
  2. Determine the breakeven point in units and dollars.
  3. Perform a sensitivity analysis for a 10% increase in sales volume.

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