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The Simo Company manufactures and sells a single product. You have the following data: Fixed costs Variable costs Selling price $32 000 $3 per
The Simo Company manufactures and sells a single product. You have the following data: Fixed costs Variable costs Selling price $32 000 $3 per unit $5 per unit Expected sales for the month ... 20 000 units REQUIRED: a) Using the precedent information: 1. Calculate the breakeven point in quantity and in revenue 2. Calculate the margin of safety in value, in volume and in percentage 3. Calculate the operating income at the expected sales volume 4. Calculate and explain the operating leverage
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