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Stenback Company manufactures and sells a single product. The company's sales and expenses for last year follow: View the information. Read the requirements. Requirement 1
Stenback Company manufactures and sells a single product. The company's sales and expenses for last year follow:
View the information.
Read the requirements.
Requirement Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table:
a What is the total contribution margin?
The total contribution margin is
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Requirements
Fill in the missing numbers in the table. Use the following questions to help fill in the
missing numbers in the table:
a What is the total contribution margin?
b What is the total variable expense?
c How many units were sold?
d What is the perunit variable expense?
e What is the perunit contribution margin?
Answer the following questions about breakeven analysis:
a What is the breakeven point in units?
b What is the breakeven point in sales dollars?
Answer the following questions about target profit analysis and safety margin:
a How many units must the company sell in order to earn a profit of $
b What is the current margin of safety in units?
c What is the margin of safety in sales dollars?
d What is the margin of safety as a percentage of sales?
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