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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; Unless otherwise
Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows; Unless otherwise instructed, round all total dollar figures (e.9., sales, total contribution margin) to the nearest dollar, breake Required: 1. Compute the break-even sales dollars. 2. Compute the margin of safety in sales dollars. 3. Compute the degree of operating leverage. Round contribution margin ratio and degree of operating leverage to two decim 4. Compute the new operating income if sales are 20% higher than expected. Round intermediate calculabions to two decimial itwhentent for the coming pear a as followet total centribution inargia) to the nearest dollat, breakeven er target, margin.rata aad degree of operating leversge to tivo decimal places
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