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Iscar Company manufactures aviation blades. Iscar quarterly fixed cost is $2,402,400, and its variable cost per blade is $15,200. Iscar current quarterly sales are 220
Iscar Company manufactures aviation blades. Iscar quarterly fixed cost is $2,402,400, and its variable cost per blade is $15,200. Iscar current quarterly sales are 220 units at a price of $32,000 per blade. (In this question, ignore taxes, unless specifically asked about.)
i) Iscar unit sales in the last 4 quarters were: 210, 230, 225 and 215. Given this information how safe is the margin of safety you computed above? Explain you answer: j) How many units does the company need to sell to attain a target profit of $1,800,000 (ignore taxes, show your calculation, round your answer)? k) Calculate the dollar sales needed to attain a target profit of $1,800,000 (ignore taxes, show your calculation, round your answer)? 1) Assume income tax rate is 21%, how many units would the company need to sell to produce a net income of $2,000,000 (show your calculation; round your answer)? m) Assume income tax rate is 21%, what should be total sales in dollars to produce a net income of $2,000,000 (show your calculation; round your answer)? n) What is the operation leverage (ignore taxes, show your calculation)? o) Explain the meaning of the operating leverageStep by Step Solution
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