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Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 per year.
- What is the product's CM ratio?
- Use the CM ratio to determine the break-even point in dollar sales
- Due to an increase in demand, the company estimates that sales will increase by $43,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed expenses do not change?
- Assume that the operating results for last year were:
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