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Question CVP Analysis (12 marks) International Printer Machines (IPM) builds three computer printer models: Inkjet, Laser, and Colour Laser, Information for these three products is

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Question CVP Analysis (12 marks) International Printer Machines (IPM) builds three computer printer models: Inkjet, Laser, and Colour Laser, Information for these three products is as follows: Total Inkjet Colour Laser Laser Selling price per unit $1,800 $300 $400 Variable cost per unit $800 $100 Expected unit sales (annual) 12,000 $150 20,000 6,000 2,000 Sales mix 50% 100% 40% 10% Total annual fixed costs are $8,000,000. Assume the sales mix remains the same at all levels of sales. Required: a) Calculate the weighted average unit contribution margin, assuming a constant Sales mix. (2 marks) b) How many units of each printer mst be sold to break even? (4 marks) c) How much is the total break evert sales dollars for the company? (2 marks) d) Explain what is safety margin, and calculate the safety margin for IPM (in dollars), assuming projected sales are $10,000,000. (4 marks)

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