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Mequired: TCheck My Work. 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable
Mequired: TCheck My Work. 1. Use the data to compute the total costs. Remember that some of the costs have a fixed and a variable cost component. 2. What is the expected contribution margin ratio? (Round to the nearest whole percent.) x% 3. Determine the break-even sales in units and dollars. Units units Dollars 5 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? Dollars $ Percentage: (Round to the nearest whole percent.) % 6. Determine the operating leverage. (Round to one decimal place.) Feodose TCheckmy Work 2. Sales minus variable cost equals contribution margin. Contribution margin divided by sales equals contribution margin ratio. 3. Fixed costs divided by unit contribution margin equals break-even sales in units. Break-even units times unit sale price equals 4. Draw lines for total costs and total sales. The two lines should intersect at the break-even point
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