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McCartney Co. developed the following information for its product: Sales price per unit Variable cost per unit Total fixed costs $100 $ 70 $1,500,000 Answer
McCartney Co. developed the following information for its product: Sales price per unit Variable cost per unit Total fixed costs $100 $ 70 $1,500,000 Answer the following independent questions and show computations to support your answers. The contribution margin per unit is $ The contribution margin ratio is %. units must be sold to break even. McCartney Co. will recognize a net income of $ if it sells 60,000 units. If the company is currently selling 55,000 units, its margin of safety ratio would be %. Refer to the original data: if the company plans to spend an additional $200,000 on advertising, how many units must it sell to earn a net income of $700,000 ? Refer to the original data: The company is considering a 10% increase in sales price. What will be the new breakeven point in units
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