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A service company incurred the following sales and costs: Sales
Sales
$760,000
Fixed administrative costs
$116,000
Fixed selling costs
$84,000
Depreciation
$20,000
Salaries
$165,000
Selling costs that change as sales change
$28,000
Variable cost of providing services
$262,000
Services provided
8,000 units
Compute the following:
Contribution margin per unit Blank 1
Contribution margin ratio Blank 2
Break even in units Blank 3
Break even in sales dollars Blank 4
Units that must be sold to have before tax profit of $500,000 Blank 5
Required sales dollars to achieve a before tax profit of $500,000 Blank 6
Margin of safety in units Blank 7 and margin of safety in dollars Blank 8
Contribution margin Blank 9 , Income Blank 10 , and Operating leverage Blank 11 Percent (%) income will increase if sales increase 20% Blank 12 Income if sales go up 20% Blank 13
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