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Question 3 - Week 10 (7 marks) International Printer Machines (IPM) builds three computer printer models: Gamma. Information for these three products is as follows:

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Question 3 - Week 10 (7 marks) International Printer Machines (IPM) builds three computer printer models: Gamma. Information for these three products is as follows: Alpha Beta Gamma Total Selling price per unit $250 $400 $1 500 Variable cost per unit $80 $200 $800 Expected unit sales (annual) | 12,000 6,000 2,000 20,000 Sales mix 50 percent 40 percent 10 percent 100 perc Total annual fixed costs are $5,000,000. Assume the sales mix remains the s of sales. Required: a) Calculate the weighted average unit contribution margin, assuming a const marks) b) How many units of each printer must be sold to break even? (3 marks) c) i) Explain what is margin of safety (1 mark) ii) Calculate in sales units the margin of safety for IPM, assuming projected 25,000 units? (1 mark) SHOW YOUR WORKING

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