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Sales Mix and Margin of Safety Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000,
Sales Mix and Margin of Safety Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players $ 50 $30 Tablets 120 80 Assume that 31,500 units of digital game players and 13,500 computer tablets were sold in the current year. Assuming no change in the sales mix, determine the following for Northwest Technology Inc. Round to one decimal place. 1. Margin of safety for game players expressed as (a) units sold, (b) sales dollars, and (c) a percentage. (a) Units sold (b) Sales dollars $ (c) A percentage. 2. Margin of safety for tablets expressed as (a) units sold, (b) sales dollars, and (c) a percentage. (a) Units sold (b) Sales dollars $ (c) A percentage. 3. Margin of safety for total sales expressed as (a) units sold, (b) sales dollars, and (c) a percentage. (a) Units sold (b) Sales dollars $ (c) A percentage. %
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