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A Company produces Digital Memory hand bands. Their sales for the month of June: 4,000
Variable manufacturing cost per unit: $9.75, sales price per unit: $42.50
Fixed manufacturing over head cost per month: $80,000.
Variable selling and administrative expenses per unit: $3.00
Fixed selling and administrative expenses per month:$12,556
Question (1) Determine the contribution margin ratio
Question (2) The Degree of operating leverage
Question (3) The break even point in dollars
Question (4) The margin of safety ratio
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