Question
Rap Album Chocolates Slim Shady Sales 500,000 $ 200,000 $ 300,000$ Company Totals 1,000,000$ Variable Costs 250,000 $ 120000 $ 210000$ 580000$ Contrib. Margin 250,000
Rap Album Chocolates Slim Shady Sales 500,000 $ 200,000 $ 300,000$ Company Totals 1,000,000$ Variable Costs 250,000 $ 120000 $ 210000$ 580000$ Contrib. Margin 250,000 $ 80,000 $ 90,000 $ 420, 000$ Fixed Costs 294,000 $ Net Oper. Income 126,000 A) Determine the breake-even points for this company express as sales dollars of Rap Album, chocolates, and Slim Shady. B) Calculate the margin of safety in dollars for the album, chocolates, and Slim Shady C) What is the degree of operating leverage at the company? D) Is the sales mix appropriate? why or why not
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