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Break-Even Units, Contribution Margin Ratio, Margin of Safety Khumbu Companys projected profit for the coming year is as fol
Total variable cost 457,258 9.01 Contribution margin 887,617 $17.49 Total fixed cost 434,395 Operating income $ 453,222 Requi
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Answer #1

1) Break even unit = Fixed cost/Contribution margin per unit = 434395/17.49 = 24837 Units

2) Required unit = (434395+240000)/17.49 = 38559 Units

3) Contribution margin ratio = 17.49/26.50 = 66%

Additional profit = 160000*.66 = 105600

4) Margin of safety = 50750-24837 = 25913 Units

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