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Medina Company produces a single product The projected income statement for the coming year is as follows Sales 40000 units @ $45 $1800000 Total variable cost

Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (40,000 units @ $45) ..........$1,800,000 Total variable cost ......................1,044,000 Contribution margin ....................$ 756,000 Total fixed cost ...........................733,320 Operating income ........................$ 22,680 Required: 1. Compute the break-even sales dollars. 2. Compute the margin of safety in sales dollars. 3. Compute the degree of operating leverage 4. Compute the new operating income if sales are 20% higher than expected.

Jun 25 2020 View more View Less

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