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Question - ROK Corporation is considering the production and sale of high-quality business calculators. The following information has been provided to you:
Annual Fixed Costs: $300,000
Sales Price of each calculator: 80
Variable Costs per calculator: $40
Required -
1. What is the breakeven point in units?
2. What is the breakeven point in dollars?
3. How many calculators must be sold to earn a profit of $90,000?
4. Assuming expected sales are to be $900,000; what is the Margin of Safety Ratio?
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