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1. The following is Jackie Corporations contribution format income statement for last month: Sales $1,200,000 Variable expen
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Answer #1

a) Contribution margin ratio = 400000/1200000 = 33.33%

b) Break even unit = 300000/20 = 15000 Units

c) If sales increase by 100 Units net operating income increase by (100*20) = $2000

d) Required unit = (300000+125000)/20 = 21250 Units

e) Margin of safety in dollars = (20000-15000)*60 = $300000

f) Degree of operating leverage = 400000/100000 = 4 Times

2) Break even unit = 840000/2.6 = 323077

Margin of safety unit = 340000-323077 = 16923

So answer is b) 16923 Units

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