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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 $200,000
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 $200,000 per year. Required: Answer the following independent questions: 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 $56,000 during next year. By how much should net operating income increase (or net loss decrease) assuming fixed expenses do not change
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