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Exercise 2. For the coming year, Saad Company anticipates the following information: Selling price Variable expense $3.7 per unit Fixed expense $37,400 $8 per unit
Exercise 2. For the coming year, Saad Company anticipates the following information: Selling price Variable expense $3.7 per unit Fixed expense $37,400 $8 per unit Units of sales 20,000 units Required: 1. Compute the break-even point in terms of units must be sold (at budgeted sales) 2. Compute the break-even point in dollars 3. Compute CM ratio to 2 decimal places 4. Compute the margin of safety 5. Compute the degree of operating leverage 6. If next month sales will decrease by 10%, what will be the percentage change in net operating income
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