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Hello! can someone please help me figure out this problem? Thanks! Khumbu Company's projected profit for the coming year is as follows: Total Per Unit
Hello! can someone please help me figure out this problem? Thanks!
Khumbu Company's projected profit for the coming year is as follows: Total Per Unit Sales $1,275,000 $25.00 Total variable cost 561,000 11.00 Contribution margin $ 714,000 $ 14 Total fixed cost 538,560 Operating income $ 175,440 Required: 1. Compute the break-even point in units. If required, round your answer to nearest whole value. units 2. How many units must be sold to earn a profit of $240,000? If required, round your answer to nearest whole value. units 3. Compute the contribution margin ratio. If required, round your answer to nearest whole number. Using the rounded ratio from above, compute the additional profit that Khumbu would earn if sales were $160,000 more than expected. 4. For the projected level of sales, compute the margin of safety in units. unitsStep by Step Solution
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