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The following data relates to #49 through #63. Show all work on separate worksheets attached to your paper. Elizabeth Ann Kreh is a designer of

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The following data relates to #49 through #63. Show all work on separate worksheets attached to your paper. Elizabeth Ann Kreh is a designer of a custom clothing line and accessories and founder of EAK Company. The following contribution format income statement is based on a sales volume of 2,500 custom backpacks, and the relevant range of production is 500 units to 5,000 units): Sales Revenue $375,000 Variable Expenses (168,750) Contribution Margin 206,250 Fixed Expenses 75,000 Net Operating Income $131,250 49. What is the Variable Expense ratio? 50. What is the Contribution margin ratio? 51. What is the contribution margin per unit (round to the nearest cent)? 52. What is the fixed expenses ratio? 53. What is the net operating income ratio? 54. What is the breakeven point in units (round to the nearest complete unit)? 55. What is the breakeven point in dollar sales? 56. If sales increased to 3,650 units what will be the contribution margin? (Additionally, prepare a worksheet proof.) 57. If sales increased to 3,650 units what will be the net operating income? (Additionally, prepare a worksheet proof.) 58. If sales declined to 1,750 units what will be the contribution margin ratio? (Additionally, prepare a worksheet proof.) 59. If sales declined to 1,750 units what will be the net operating income? (Additionally, prepare a worksheet proof.) 60. What is the margin of safety in dollars? 61. What is the degree of operating leverage? 62. Using the degree of operating leverage from #61, what is the estimated percent increase in net operating income of a 6% increase in sales? (Additionally, prepare a worksheet proof). 63. Using the degree of a 9% increase in sales? (Additionally, prepare a worksheet proof)

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