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Compute the company margin of safety expressed in units

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Reference no: EM132519425

"You Rang?" manufactures and sells boomerangs. The company's contribution format income statement for the month of September is given below. The company is looking to make a profit of $80,000 for the month.

                                              Total:                          Per Unit:

Sales(8,000 units)          $160,000                        $20.00

Less Variable Expenses   $96,000                           $12.00

Contribution Margin      $64,000                             $8.00

Less Fixed Expenses     $34,000                             $0.00

Operating Income       $30,000                              $0.00

Compute the following:

Question 1. The Contribution Margin Ratio for "You Rang?"

Question 2. The company's break-even point in both units and sales dollars.

Question 3. The Target Operating Profit for "You Rang?" in both units and sales dollars.

Question 4. The company's Margin of Safety expressed in units, sales dollars, and as a percentage

Reference no: EM132519425

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