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Last year's income statement for Miller Corporation is as follows: Sales (29,000 units x 542) Less: Variable expenses Contribution margin Less Fixed expenses Net income

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Last year's income statement for Miller Corporation is as follows: Sales (29,000 units x 542) Less: Variable expenses Contribution margin Less Fixed expenses Net income $1.218.000 812.000 406,000 300,000 $ 106,000 Required: A. Calculate the contribution margin per unit. (1 mark) B. Calculate the contribution margin ratio. (1 mark) . Calculate the breakeven point in units. (2 marks) D. Calculate the breakeven point in sales dollars. (1 mark) E Calculate the margin of safety percentage and briefly explain what this means. (2 marks) F. Refer to the original data. Calculate the degree of operating leverage. Explain the term operating leverage. (2 mark) 6. Many companies in the same industry have a DOL of 7. What does this indicate about Miller Corporation compared to the competition? (1 mark) H. If sales are expected to decrease by 5%, calculate the expected net income. Use your answer in part (f) to determine this answer. (2 marks)

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