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Pringle Company distributes a single product. The companys sales and expenses for a recent month follow: Total Per UnitSales $ 5 6 0 , 0
Pringle Company distributes a single product. The companys sales and expenses for a recent month follow: Total Per UnitSales $ $Variable expenses Contribution margin Fixed expenses Net operating income $Instructions: What is the monthly breakeven point in unit sold and in sales dollars? What is the companys CM ratio and the variable expense ratio? Without resorting to computations, what is the total contribution margin at the breakeven point? If monthly sales increase by $ and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Refer to the original data. Compute the companys margin of safety in both d o l l a r and p e r c e n t a g e terms How many units would have to be sold each month to earn a target profit of $ Pringle Company is considering enhancing its profits by adding a high quality speaker to its telephone devices. The variable expenses per unit will change from $current to be $proposed The suggestion will reduce fixed expenses from $current to be $proposed If sales per unit equal $will not changeand the company sells units, by how much will the profits increase decrease? Calculate the breakeven sales in dollars for the proposed plan in required
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