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Part 1: Question 1 (total 35 marks) The Tobacco-Free Institute produces and sells a single-size carton of smokeless cigarettes for $20 per carton. Its expected
Part 1: Question 1 (total 35 marks) The Tobacco-Free Institute produces and sells a single-size carton of smokeless cigarettes for $20 per carton. Its expected costs are as follows: Variable manufacturing costs $8 per carton Variable selling costs $4 per carton Fixed manufacturing costs $60,000 per month Fixed selling costs $20,000 per month 1) Using traditional Income statement format, calculate Net profit for the company if 200,000 cartons are sold in 2020 - 10 marks 2) Using a contribution margin format, prepare an Income statement for the company if 200,000 cartons are sold in 2020 - 10 marks 3) Compute the break-even point in units and in dollars 10 marks 4) If 200,000 cartons are sold, determine the margin of safety in units and in dollars - 5 marks
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