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Question 13 The following is ABC Corporation's contribution format income statement for next month based on a budgeted sales of 20,000 units. Sales Less variable
Question 13 The following is ABC Corporation's contribution format income statement for next month based on a budgeted sales of 20,000 units. Sales Less variable expenses Contribution margin Less fixed expenses Operating income $1,200,000 800,000 400,000 300,000 $100,000 Complete the Excel template by analyzing the cost structure for ABC Corporation and then answer the following questions. a. The company's contribution margin ratio is b. The company's break-even in units is c. If sales increase by 100 units, operating income should increase by d. The company have to sell units to attain target profits of $125,000. e. The company's margin of safety ratio is f. The company's degree of operating leverage is g. The company is able to reduce variable cost by 10% but increasing fixed cost by $50,000. Should the company implement this strategy (Y/N)
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