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Martin Company's projected profit for the coming year is as follows: Total Per Unit Sales $300,000 $30 Total Variable Cost 200,000 20 Contribution Margin $100,000
- Martin Company's projected profit for the coming year is as follows:
| Total | Per Unit |
Sales | $300,000 | $30 |
Total Variable Cost | 200,000 | 20 |
Contribution Margin | $100,000 | $10 |
Total Fixed Cost | 80,000 |
|
Operating Income | $20,000 |
|
- Compute the variable cost ratio (round to 4 decimal places).
- Compute the contribution margin ratio (round to 4 decimal places).
- Compute the break-even point in units.
- Compute the break-even point in sales dollars.
- How many units must be sold to earn a profit of $50,000?
- For the projected level of sales, compute the margin of safety in units
- For the projected level of sales, compute the margin of safety in sales dollars.
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