3-29 CVP analysis, margin of safety. Suppose Fixed costs are $660,000. 1. Compute the contribution margin percentag 2. Compute the selling price if variable costs a 3. Suppose 75,000 units are sold. Compute the 4. What does this tell you about the risk of Mo this risk to increase?

3-29 CVP analysis, margin of safety. Suppose Fixed costs are $660,000. 1. Compute the contribution margin percentag 2. Compute the selling price if variable costs a 3. Suppose 75,000 units are sold. Compute the 4. What does this tell you about the risk of Mo this risk to increase?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

3-29: Can you walk me through how to solve this problem. I feel like I am doing it wrong. For the first part I got CMP= 60%.

3-29 CVP analysis, margin of safety. Suppose
Fixed costs are $660,000.
1. Compute the contribution margin percentag
2. Compute the selling price if variable costs a
3. Suppose 75,000 units are sold. Compute the
4. What does this tell you about the risk of Mo
this risk to increase?

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