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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
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 Fixed selling and administrative cost per month $ 6 Variable selling and administrative cost per unit Fixed manufacturing overhead per month 2 $ 300,000 600,000 a. Determine the company's monthly break-even point in units. 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. a. Break-even point b. Sales revenue c. Margin of safety d. Increase in operating income 75,000 units $ 3,500,000 +
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