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Paste BTU . A- $ - % 8-98 IM IM Merge & Center Conditional Formatas Formatting Table - Styles Styles Chipboard Font Alignment Number P13

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Paste BTU . A- $ - % 8-98 IM IM Merge & Center Conditional Formatas Formatting Table - Styles Styles Chipboard Font Alignment Number P13 X N 0 D E F 1. Question (19 Marks) 2 The following is Alsatian Corporation's contribution format income statement from last month 3 Sales (2000 units x 570) $140,000 4 Less: Vanable Costs 84.000 5. Contribution Marg 56,000 6 Less: Fixed Expenses 24.000 7 Operating Income $32,000 8 The company has no beginning or ending inventories and produced and sold 2,000 units during the month 9 T 10 Required 11 A What is the company's break-even sales in $(2) 12 13 14 15 16 17 8. If the sales volume increases by 10% and variable costs/unut decreases by $2.00, what will the new operating income be? Produce a CVP statement (3) 16 19 10 21 22 24 25 C What sales in tunits would be required to attain an operating income of $39,000(2) 26 D. What is the company's main of safety in dollars and stated as a ?) E Part 1: What is the company's degree of operating leverage based on the original data) Part 2: Using your answer to Part 1, if sales increased by 159 above the amounts in the onginal data, how much in Swould not income increase F. If the business requires an operating income of 20% of sales what will be the required sales in Sassuming all costs and selling prices in as in the original data? (1) 6. Suppone Alain Corporation had a tax rate of 251 and wants to saman after tax net income of 534,000 Calculate the sales in units that would be seeded from the inal data)

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