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Question 2: Pringle Company distributes a single product, the company's sale and expenses for a recem month follow: Per Unite Total 225,000 75 Sales Variable

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Question 2: Pringle Company distributes a single product, the company's sale and expenses for a recem month follow: Per Unite Total 225,000 75 Sales Variable expenses Contribution margin Fixed Expenses Net Operating Income 45 135,000 90,000 75,000 15.000 30 The company is selling 3,000 units per month. Required: 1. What is the monthly break-even point in units and in sales dollars? 2. How many units would have to be sold each month to earn a target profit of 27,000? 3. Refer to the original data; compute the company's margin of safety in dollars. 4. What is the company's CM ratio, if the monthly sales increase by $ 120,000 and there is change in fixed expenses, by how much would you expect monthly net operating income increase? 5. What is the margin of safety in percentage? 6. What is a degree of operation leverage? 7. Estimate the impact on net operating income of a 6% increase in sales. no C

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