SUBJECT: COST ACCOUNTING

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1(a):

High Fly sells helicopters. During the current year, 100 helicopters were sold resulting in $820,000 of sales revenue, $250,000 of variable costs, and $342,000 of fixed costs.

How many hekicopters requred to be sold to acheive Breakeven point?

1(b)

Fost Corporation's contribution margin ratio is 20%, at the $225,000 sales level, net operating income is $3000.

Required:

Calculate DOL ?

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