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MA Assignment 3
MA Assignment 3
Reg# 38058
Q. 1 CM Ratio 25%
Expense Ratio 75%
Units = 120000/60
Units = 2000
c) Sales 1296000
Variable Expense 972000
Contribution Margin 324000
Fixed Cost 240000
Net Income 84000
c) I would not recommend the changes to be made as it reduce the company's profit
and company need to sell more units to reach breakeven