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RVL Enterprises sells clocks for $150 each and expects variable product costs to be $120 per unit with total fixed costs of $65,000. (Base Case)

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RVL Enterprises sells clocks for $150 each and expects variable product costs to be $120 per unit with total fixed costs of $65,000. (Base Case) a) Calculate the Contribution Margin Ratio b) Determine the break-even sales units of the company. c) What level of sales dollars should the company expect if RVL wants to earn an operating profit of $43,000 ? d) Starting from base case, if RVL wants to realize $39,000 in operating profit, what must the minimum sales price, per unit, be if they produce and sell 2,500 units and there is no change in variable cost per unit? e) Starting from the base case scenario, the sales manager is convinced that sales would increase from 3,000 to 3,300 units if the company simply replaces $5,000 of fixed cost for the sales rep with a sales commission of $4.50 per unit sold. Should the company make the change? Justify (quantify) your answer. f) The company decided to reduce the base case sales price by 10% because of stale inventory. What is the minimum number of units the company must produce and sell to break even, given the base case variable and fixed cost structure? g) The company believes they can produce and sell more but they would have to rent additional warehouse space for $32,000 per year. Using the base case cost scenario, how many more units would they have to sell to justify them renting the additional space

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