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What is the safety margin ratio at the given level of sales

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Reference no: EM132480756

EEE Company produces a single product which sells for $ 160 per.unit. Fixed expenses total $ 120,000 per month, and the unit contribution margin is $ 96. The company sales average 1,500 units per month.

Question a) What is the break-even point?

Question b) What is the safety margin ratio at the given level of sales?

Question c) What is the degree of operating leverage?

Question d) Would it be profitable for this company to increase fixed costs by $ 10,000 for advertising campaign in order to increase sales volume by 5%?

Reference no: EM132480756

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