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QUESTION Pons UMHO - Fedexpenses from rom ratio Sales) rood expenses Unit CM-V CM Ratio - Unit CM/Unit P Unit sales to break even -
QUESTION Pons UMHO - Fedexpenses from rom ratio Sales) rood expenses Unit CM-V CM Ratio - Unit CM/Unit P Unit sales to break even - fxed expenses/CM per unit Dollar sale to break even = Fixed expenses/CM Ratio Unit sales to attain the target profit (Target profit. Fixed expensesyCM per unit Dollar sales to attain the target profit -(Target profit + Fixed expensesy/CM Ratio Margin of safety in dollars - Actual sales - Break-even sales Degree of operating leverage - Contribution margin/Net operating income is greater than $400,000 is $160,000 is $240,000 is less than $160,000
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