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Gulf Company has the following information for its first year inbusinss Sales price per unit Variable cost per unit Total fixed costs Units sold $50
Gulf Company has the following information for its first year inbusinss Sales price per unit Variable cost per unit Total fixed costs Units sold $50 $30 $20,000 1,500 Requirements (4Points for 1. Compute the contribution margin per unit and the contribution margin ratio 2. Determine the break-even point in units and in dollars 3. Compute the margin of safety in dollars, and the margin of safety ratio income decrease if Determine the operating leverage factor, and by what percentage will the operating sales volume decreases by 8%? 4. How many units the company have to sell to earn an operating income of $6002 And how much will the sales revenue be? 5. If variable and fixed costs are both increased by 30% what will be the effect on the break-even point in units and dollars
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