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Problem - The Waldo Company had the following data for 2011:
Sales ($20 X 20,000 units) $400,000
Variable cost $240,000
Fixed cost $100The Waldo Company had the following data for 2011:
,000
Operating income $60,000
Required -
A. Calculate the contribution margin per unit.
B. What is the break-even point in units?
C. What is the amount of sales in units needed to obtain an operating income of $40,000?
D. What is the margin of safety in units, assuming operating income is $80,000?
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