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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 34
Break-Even Units, Contribution Margin Ratio, Margin of Safety
Tensing Company's projected profit for the coming year is as follows:
Required:
1. Compute the break-even point in units.
2. How many units must be sold to earn a profit of $450,000
3. Compute the contribution margin ratio. Using that ratio, compute the additional profit that Tensing would earn if sales were $37,000 more than expected.
4. For the projected level of sales, compute the margin of safety in units.
Tensing Company's projected profit for the coming year is as follows:
Required:
1. Compute the break-even point in units.
2. How many units must be sold to earn a profit of $450,000
3. Compute the contribution margin ratio. Using that ratio, compute the additional profit that Tensing would earn if sales were $37,000 more than expected.
4. For the projected level of sales, compute the margin of safety in units.
Explanation
Verified
Verified
1. Calculate Break-even sales: 
2. Calcu...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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