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MB Candy sells boxes of sugar free candy. Boxes sell for $8.50 per box, variable cost is $3.25 per box and fixed cost is $168,000.

MB Candy sells boxes of sugar free candy. Boxes sell for $8.50 per box, variable cost is $3.25 per box and fixed cost is $168,000. MB plans on selling 50,000 boxes in 2021.

Required:

a. Compute break-even point

b. Compute margin of safety (dollars).

c. Compute the degree of operating leverage.

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