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What is the breakeven point in unit and sales dollars for the year for each type of table? Calculate the number of each type of
What is the breakeven point in unit and sales dollars for the year for each type of table? Calculate the number of each type of table and their dollar values that must be sold to beak-even, assuming that the tax rate is 20 per cent. Calculate the margin of safety in units and dollars at the current sales. Explain your results? Use the degree of operating leverage to investigate the impact of 10% increase and 10% decrease in the sales revenue on profit. Explain your results. If it is expected that sales fluctuations will rise, what is your recommendation about the cost structure for this business? Calculate the number of each type of table and their dollar values that must be sold to achieve a targeted after tax profit of $500,000, assuming that the tax rate is 10 per cent. Manager is considering buying new production equipment. The new equipment will increase fixed costs by $100,000 per year and will decrease the variable cost of each table by 20%. Assuming the same sales mix, how many of each type of table do they need to sell to breakeven? If the variable cost per table increases by 10% and selling price by 15%, what would be the profit? What is the new break-even in sales dollars, if fixed costs and contribution margin ratio both increase by 23.5%? What is the new break-even point if the number of units sold increases by 15%
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