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. Question 6, E3-29 (simila... Part 6 of 7 HW Score: 62.39%, 5.62 of 9 points Points: 0.62 of 1 C Suppose Doral Corp.'s breakeven
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Question 6, E3-29 (simila... Part 6 of 7 HW Score: 62.39%, 5.62 of 9 points Points: 0.62 of 1 C Suppose Doral Corp.'s breakeven point is revenues of $1,200,000. Fixed costs are $720,000. Requirements 1. Compute the contribution margin percentage. 2. Compute the selling price if variable costs are $12 per unit. 3. Suppose 55,000 units are sold. Compute the margin of safety in units and dollars. 4. What does this tell you about the risk of Doral making a loss? What are the most likely reasons for this risk to increase? Uy Contribution margin percentage price = Variable costs per unit + ) The selling price is $ 30 Requirement 3. Suppose 55,000 units are sold. Compute the margin of safety in units and dollars. Determine the formula to calculate the margin of safety in dollars. Requirement 3. Suppose 55,000 units are sold. Compute the margin of safety in units and dollars. Determine the formula to calculate the margin of safety in dollars. Margin of safety in Budgeted (or actual) revenue Breakeven revenue dollars The margin of safety is units andStep by Step Solution
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