Patient Medical Products Ltd., manufactures a single product and has the following sales and expenses...
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Accounting
Patient Medical Products Ltd., manufactures a single product and has the following sales and expenses for the last year at a volume of 20,000 units. sales 400,000
less variable costs 300,000
contribution margin 100,000
less: fixed costs 40,000
operating income 60,000 Required:
- Calculate Break Even in Sales dollars.
- Calculate Break Even in Units.
- Calculate the companys margin of safety in dollars.
- Calculate the companys margin of Safety percentage.
- Explain the relationship between the break-even point and net operating income with respect to the unit contribution margin for each additional unit sold.
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