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HW5 - Compatibility Mode Saved to this PC Search (Alt+Q) Mailings Review View Help Aa Po E E T AaBbCcDc AaBbCcDc AaBbC AaBbCc AaB AaBbCct
HW5 - Compatibility Mode Saved to this PC Search (Alt+Q) Mailings Review View Help Aa Po E E T AaBbCcDc AaBbCcDc AaBbC AaBbCc AaB AaBbCct AaBbCcD 1 Normal No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em.. Styles AutoSave Off Times New R File Home Insert Draw Design Layout References Cut Times New Roma 12 A Copy Paste I U ab Xx Format Painter x ADA Clipboard Font Comments Share Find E Replace Dictate Editor Select Reuse Files Editing Voice Editor Reuse Files Paragraph 1. Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit Total per-unit variable costs. $3,000 $2,500 $800,000 Total annual fixed costs (1) What's annual breakeven point in units and breakeven point in dollars? (2 point) (2) If 4,000 bed frames were sold, what's Premium Bed's operating income? (1 point) 2. Use data from the following contribution margin statement (without data on units): Revenues Variable costs $5,000 $2,000 Contribution margin $3,000 Fixed costs $1,800 Profit before taxes $1,200 (1) Predict profit at sales of $6,000 (1 point) (2) What is the breakeven revenue? (1 point) (3) At current sales of $5,000, how much is the margin of safety (in %)? (0.5 point) (4) At current sales of $5,000, how much is the operating leverage? (0.5 point) 155 words Text Predictions: On Type here to search Accessibility: Investigate Focus + 93% Rain to stop 4:44 PM 4/19/2022 [1
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