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Miller Metal Co. makes a single product that sells for $41.5 per unit. Variable costs are $27.9 per unit, and fixed costs total $65,905 per
Miller Metal Co. makes a single product that sells for $41.5 per unit. Variable costs are $27.9 per unit, and fixed costs total $65,905 per month. Required: a. Calculate the number of units that must be sold each month for the firm to break-even. (Do not round intermediate calculations.) units b. Assume current sales are $416,000. Calculate the margin of safety and the margin of safety ratio. (Round intermediate calculations to the nearest whole number.) Margin of safety Margin of safety ratio c. Caculate operating income if 6,400 units are sold in a month. (Do not round intermediate calculations.) d. Calculate operating income if the selling price is raised to $44.5 per unit, advertising expenditures are increased by $10,000 per month, and monthly unit sales volume becomes 7,200 units. (Do not round intermediate calculations Operating income e. Assume that the firm adds another product to its product line and that the new product sells for $22 per unit, has variable costs of $15 per unit, and causes fixed expenses in total to increase to $82,000 per month. Calculate the firm's operating income if 6,400 units of the original product and 4,100 units of the new product are sold each month. For the original product, use the selling price and variable cost data given in the problem statement. (Do not round intermediate calculations.) Operating income f. Calculate the firm's operating income if 3,900 units of the original product and 6,600 units of the new product are sold each month. (Do not round intermediate calculations.) Operating income
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