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Monterey Co. makes and sells a single product. The current selling price is $18 per unit. Variable expenses are $10.8 per unit, and fixed expenses

Monterey Co. makes and sells a single product. The current selling price is $18 per unit. Variable expenses are $10.8 per unit, and fixed expenses total $34,360 per month. (Unless otherwise stated, consider each requirement separately.

Calculate the margin of safety and the margin of safety ratio. Assume current sales are $103,900. (Do not round intermediate calculations. Round your percentage answer to 2 decimal places.)

c. Calculate the monthly operating income (or loss) at a sales volume of 5,050 units per month. (Do not round intermediate calculations.)

d. Calculate monthly operating income (or loss) if a $2 per unit reduction in selling price results in a volume increase to 8,150 units per month. (Do not round intermediate calculations.)

f. Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month increase in advertising expenses, both relative to the original data. Assume a sales volume of 5,050 units per month. (Do not round intermediate calculations.)

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