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Sinbad manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: (LO#3) Per unit Units 20,000 50 30 Total

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Sinbad manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: (LO#3) Per unit Units 20,000 50 30 Total 1,000,000 600,000 400,000 110,000 290,000 Sales Variable Expenses CM Total Fixed Expenses Operating Profit 20 Required: EXCEL Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in units and dollar sales. d. Margin of safety in dollar amount and percentage. e. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income? Verify your answer f. If the per unit variable production costs increase by 15%, and if fixed selling and administrative expenses increase by 12%, what will be the new break-even point in dollar sales? g. if the company would like to achieve a profit of $90,000 next year, what would be the break-even point in units and dollar amount to earn that target? h. If monthly sales increase by $80,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase

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