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The below information belongs to Friday Market Corporation ... Sales (25,000 units)... Variable Expense....... Contribution Margin.......... Fixed Expenses........ Net Operating Income..... Required Amount $750,000 600,000

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The below information belongs to Friday Market Corporation ... Sales (25,000 units)... Variable Expense....... Contribution Margin.......... Fixed Expenses........ Net Operating Income..... Required Amount $750,000 600,000 150,000 90,000 $60,000 1. Compute the company's: a. CM per unit (3 marks) b. CM Ratio (1 mark) c. Break-even point in unit sales (1 mark) d. Break-even point in dollar sales if FC increases by $30,000 (2 marks) e. Compute unit sales if target profit is AED 72,000 (1 mark) f. Compute dollar sales if target profit is $80,000 and FC increases by $10,000. (2 marks) CVP Formula Sheet 1. Profit = Sales - Variable Expenses - Fixed costs 2. Unit CM = Unit Price - VC per unit 3. CM Ratio = 100 4. BEP in units = 5. BEP in $ = 6. Unit sales to achieve target profit = (Target Profit + FC)# unit CM 7. $ sales to achieve target profit = (Target Profit + FC)+ CM Ratio

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