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In: Accounting

A compnay manufactures pianos. Sale 3000 units Price 500 per unit Variable costs 290 per unit...

A compnay manufactures pianos.

Sale

3000 units

Price

500 per unit

Variable costs

290 per unit

Fixed cost

205000

A) Calculate the contribution margin ratio

B) How many pianos need the company to sell to not loose?

C) How much can the sale decrease in price, without the company loses (margin of safety)

D) Calculate the operating leverage margin according to the current sale

E) If sales increase by 20% for next year, how much will the income increase?

Solutions

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