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speakbox produces cd ' s for 1 5 $ per unit. The contribution margin ratio is 3 0 % . Fixed expenses total 2 7

speakbox produces cd's for 15$ per unit. The contribution margin ratio is 30%. Fixed expenses total 27,000$
a)calculate variable cost per unit
b)calculate the CD's the company needs to sell to break even
c)how many sales the company needs to generate to earn a target operating incomebefore taxes of:
10,800$. Assume income tax rate of 40%
d)assume the company expected to sell 10,000 cds, what is the margin of safety ratio? Explain as a percentage
e)assume the company expected to sell 10,000 cds, what is the margin of safety leverage? Explain as a percentage
f)using operating leverage if sales increase by 20% of the expected sales, how much will operating income increase by?

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