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Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25. Assume Nellie

Nellie Company has monthly fixed costs totaling $100,000 and variable costs of $20 per unit. Each unit of product is sold for $25. Assume Nellie Company expects to sell 24,000 units of product this coming month.

  1. Calculate the contribution margin per unit.
  2. Find the break-even point in units.
  3. How many units must be sold to earn a monthly profit of $40,000?
  4. Calculate the contribution margin ratio.
  5. Find the break-even point in sales dollars
  6. What amount of sales dollars is required to earn a monthly profit of $60,000?
  7. Find the margin of safety in units.
  8. Find the margin of safety in sales dollars

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