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The following is Allison Corporation's contribution format income statement for last month: The company has no beginning or ending inventories. The company produced and sold
The following is Allison Corporation's contribution format income statement for last month: The company has no beginning or ending inventories. The company produced and sold 10,000 units last month. What is the company's contribution margin ratio? A. 62.5% B. 160.0% C. 500% D. 20% What is the company's break-even sales in dollars? A. $0 B. $640,000 C. $700,000 D. $400,000 If sales increase by 200 units, by how much should net operating income increase? A. $16,000 B. $5,000 C. $2,000 D. $10,000 How many units would the company have to sell to attain target profits of $120,000? A. 10, 800 units B. 12,000 units C. 10, 400 units D. 11, 200 units What is the company's margin of safety percentage? A. 25% B. 20% C. 40% D. 10% What is the company's degree of operating leverage? A. 0.2 B. 8.0 C. 1.7 D. 5.0
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