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In 2019, Chelsea Vines Co. had a net loss of $100,000 when the selling price per unit was $10 per unit, the variable costs per
In 2019, Chelsea Vines Co. had a net loss of $100,000 when the selling price per unit was $10 per unit, the variable costs per unit were $6, and the fixed costs were $200,000. Management expects per unit data and total fixed costs to be the same in 2020. Management has set a goal of earning net income of $80,000 in 2020. Instructions: Answer each of the following questions. Round each dollar amount to the nearest cents. Round each percentage to the nearest 100" or two decimal places. Round up on the number of units. 1. What is the contribution margin per unit? 6 2. What is the contribution margin percentage? 3. What is the breakeven in sales dollars? 100,000 4. How many units were sold in 2019 when there was a net loss of $100,000? 380,000 5. How many units will be sold in 2020 if there will be a profit of $125,000? 6. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety? 350,000 7. If Steve Jones Co. reaches its target sales in 2020, what is the margin of safety percentage
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