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Xi Company is the exclusive Iowa distributor of lawn mowers for a small manufacturing company. It sells only one model at £600 per unit and for which Xi pays £250. Xi's other variable costs amount to £50 per unit. Fixed costs are £2,000. In October, Xi sold 15 lawn mowers and it sold 20 in November.
Required:
Problem 1: Calculate the following values:
a. Monthly break-even point in monetary sales
b. Monthly break-even point in units
c .Monthly income for October
d. Monthly income for November
e. Margin of safety for October
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