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pls answer all of it, thank you Homework Assignment 04-10 points - Chapter 6 - Cost-Volume-Profit Due: Wednesday-Thursday, March 4-5 Problem 1: Iron Decor manufactures
pls answer all of it, thank you
Homework Assignment 04-10 points - Chapter 6 - Cost-Volume-Profit Due: Wednesday-Thursday, March 4-5 Problem 1: Iron Decor manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Sales (20,000 units) ............... Direct materials... Direct labor (variable).......... Manufacturing overhead: Total $1.000.000 $200,000 $50,000 Per Unit $50.00 $10.00 $250 $70,000 $80,000 $350 $400 Food..... Selling & administrative: Variable $500 $100,000 $30,000 SI 50 Required 5 points: Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in dollar sales and unit sales. d. Margin of safety percentage, both in dollars and % e. The degree of operating leverage. f. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income? g. If the per unit variable production costs increase by 15%, and if fixed selling and administrative expenses increase by 12%, what will be the new break-even point in dollar salesStep by Step Solution
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