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Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Required: Compute
Margin of Safety and Operating Leverage
Medina Company produces a single product. The projected income statement for the coming year is as follows:
Required:
Compute the breakeven sales dollars.
$
Compute the margin of safety in sales dollars.
$
Compute the degree of operating leverage.
Compute the new operating income if sales are higher than expected.
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