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For 2023, the estimated (budgeted) cost and revenue information of am Company is provided below: Sales units = 120.000 units, Selling price per unit =

For 2023, the estimated (budgeted) cost and revenue information of am Company is provided below: Sales units =
120.000 units, Selling price per unit = 90 dollars, Number of units produced = 100.000 units, DM = $20 per unit, DL =
$13 per unit, Var MOH = $5 per unit, Fixed MOH = $1.000.000, Var Selling and Adm Exp = $2 per unit, Fixed S&A Exp =
$400.000, A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of
safety ratio of am Company? D.) Calculate the degree of operating leverage and explain what happens to NI if sales
increase 5% and decrease 10%.

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