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Question 1: Kabul Express had sales of $200,000, total variable expenses of $120,000, and total fixed expenses of $36,000. What is the company's CM ratio?

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Question 1: Kabul Express had sales of $200,000, total variable expenses of $120,000, and total fixed expenses of $36,000. What is the company's CM ratio? Using the CM ratio, calculate the break-even level of sales in dollars. 15 Marks Question 2: Banana Fabrics sells rolls of cloths to dressmakers. The rolls are sold for $50 cach. Variable costs are $35 per door, and fixed costs total $250,000 per year. The company is currently selling 28,000 doors per year. Prepare a contribution format income statement for the company at the current level of sales. 15 Marks

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