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Variable cost per unit $20- price $30 total fixed cost $50,000 Expected sales 8000 units- target profit $20.000 Required: 1. Compute break-even volume and

 

Variable cost per unit $20- price $30 total fixed cost $50,000 Expected sales 8000 units- target profit $20.000 Required: 1. Compute break-even volume and value 2. Compute the quantity of sales that achieve the target profit 3. Compute the safety margin ratio. 4. If the variable cost increases by 20%, what is the effect on break-even volume. 5. If the fixed cost decreases by 20%, what is the effect on break-even volume.

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1 Breakeven volume and value To calculate the breakeven point we need to find the number of units that need to be sold to cover the fixed and variable ... blur-text-image

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