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Question 10: Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per

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Question 10: Mauro Products distributes a single product, a woven basket whose selling price is $28 per unit and whose variable expense is $24 per unit. The company's monthly fixed expense is $5,200. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? Question 11: Lin Corporation has a single product whose selling price is $135 per unit and whose variable expense is $54 per unit. The company's monthly fixed expense is $40,400. Required: 1. Calculate the unit sales needed to attain a target profit of $4,150. 2. Calculate the dollar sales needed to attain a target profit of $8,800. Question 12: Engberg Company installs lawn sod in home yards. The company's most recent monthly contribution format income statement follows: Percent of Sales 100% 40% Sales Variable expenses Contribution margin Fixed expenses Net operating income Amount $126,000 50,400 75,600 21,000 S 54,600 60% Required: 1. What is the company's degree of operating leverage? 2. Using the degree of operating leverage estimate the impact on net operating income of a 25% increase in sales. 3. Construct a new contribution format income statement for the company assuming a 25% increase in sales

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