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Xanadu, Inc., manufactures and sells one product, Alph, for $37 per unit. Xanadu is the only manufacturer that produces Alph because it is a patent

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Xanadu, Inc., manufactures and sells one product, Alph, for $37 per unit. Xanadu is the only manufacturer that produces Alph because it is a patent protected product. Although Xanadu, Inc., only sells the one product, Alph, they have loyal customers all over the world and the company has remained profitable for many years. The company maintains no beginning or ending inventories and its relevant range of production is 15,000 units to 35,000 units per month. Shipping costs are 20% of variable selling expense, and Xanadu typically produces and sells 30,000 units per month of its product and its unit costs are as follows: Amount Per Unit Direct materials 9.00 Direct labor $ 6.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead 7.00 Fixed selling expense $ 2.50 Variable selling expense 1.50 Fixed administrative expense .50 Sales commissions 3.00 Variable administrative expense 1.00 nue 5. What is Xanadu's break-even point in unit sales? What is its break-even point in dollar sales? 6. How much will Xanadu's net operating income increase if it can grow production and sales from 30,000 units to 34,500 units? 7. What is Xanadu's margin of safety at a sales volume of 30,000 units? 8. What is Xanadu's degree of operating leverage at a sales volume of 30,000 units

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