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Haku Inc, incurs variable costs 70% of sales and total fixed costs of $30,000. To eam target profit of $15.000. Haku Inc. must generate sales

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Haku Inc, incurs variable costs 70% of sales and total fixed costs of $30,000. To eam target profit of $15.000. Haku Inc. must generate sales of: $75,000 $250.000 O $150.000 $100.000 A relatively low margin of safety ratio (MOS%) for a product is usually an indication that the product: Has a high contribution margin. os riskier than a product with a higher margin of safety ratio Is losing money Is less risky than a product with a higher margin of safety ratio, Melissa Manager expects next year's degree of operating leverage to increase. Which of the following statements is consistent with Melissa's expectations? Next year's variable costs per unit are expected to decrease Next year's selling price is expected to increase Next year's activity or volume level is budgeted to be lower than this year's Next year's total fixed costs are expected to be lower than this year's Dakoka Corporation provided the following information regarding its only product. Sales price per unit $60 Direct materials used $160,000 Direct labor costs incurred $230,000 Variable manufacturing overhead costs incurred $150,000 Variable selling and administrative costs incurred $60,000 Fixed manufacturing overhead costs incurred $80,000 Fixed selling and administrative costs incurred $10,000 Units produced and sold 12.000 Assume no beginning inventory Assuming there is excess capacity, what would be the change in operating income as a result of accepting a special order for 1.000 units at a sales price of $55 per unit assuming additional fixed manufacturing overhead costs of $7,000 would be incurred? Operating income decreases $87,000. Operating income increases $2.000. Operating income decreases $2,000 Operating income decreases $5,000

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