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Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows. Variable manufacturing cost per
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows. Variable manufacturing cost per unit Variable selling and administrative cost per unit Fixed manufacturing overhead per month Fixed selling and administrative cost per month a. Determine the company's monthly break-even point in units. $300,000 600,000 b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000. c. Compute the company's margin of safety if its current monthly sales level is $2,500,000. d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume. Answer is complete but not entirely correct. Break-even point 75,000 units b. Sales revenue 3,500,000 Margin of safety 1,000,000 Increase in operating d $ 6,000 income
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