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pleqse andwer 4,5,6 Puppy Co. Puppy Co. reported the following contribution margin income statement for 2020. Puppy Co. Contribution Income Statement For Year Ended December

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Puppy Co. Puppy Co. reported the following contribution margin income statement for 2020. Puppy Co. Contribution Income Statement For Year Ended December 31, 2020 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Net operating income $2,160,000 1.728.000 432,000 324.000 $108.000 4) If Puppy Co. achieves its target net operating income for 2021, what is its margin of safety in percentage form? 2160,000 - 1,6201000 = 540.00 2.25 2160,000 5) Assume the company is considering investing in a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 per unit. Assuming the company purchases this machine, what would be the impact on net operating income? 6) Compute the company's degree of operating leverage for 2020. Cm 4321000 NUT 4 180,000 7) Assume sales decrease by 5% in 2020, what is the company's net operating income (use the degree of operating leverage to compute)

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