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Question 5 % 1. A company provided the following information: 2. Sales $500,000 3. Variable costs 175,000 4. Fixed costs 201,500 5. Required: 6.

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Question 5 % 1. A company provided the following information: 2. Sales $500,000 3. Variable costs 175,000 4. Fixed costs 201,500 5. Required: 6. A. What is the contribution margin ratio? 1. B. What is the break-even point in sales dollars? 20 Point $ $ +A +A $ 1. C. What is the margin of safety in sales dollars if it is required to generate a profit of $39,000? 1. D. What is the new margin of safety if fixed costs increase by $13,000 and it is required to generate a profit of $39,000?

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