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Frisch Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 170 Variable expense per unit $

Frisch Corporation produces and sells a single product. Data concerning that product appear below:

  • Selling price per unit $ 170
  • Variable expense per unit $ 80
  • Fixed expense per month $ 140,000

Required:

Given the present situation, compute

a. The break-even sales in units. (2 Marks)

b. The break-even sales in dollars. (2 Marks)

c. The sales in dollars that would be required to produce a net operating income of $100,000. (1 Mark)

d. The margin of safety in dollars if the companys actual sales are $350,000. (1 Mark)

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