please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Exhibit 1: Assumptions (Both Products)Product #1:Launch-itSales price per unit$ 10.00Variable costs per unit:$ 4.00Monthly volume240 Product #2:Treat-timeSales price per unit$ 30.00Variable costs per unit:$ 14.00Monthly volume160 Total fixed costs per month$ 1,500.00 Target profit per month$ 8,000.00 Margin of Safety (in $) Margin of Safety % Degree of Operating Leverage Expected % change in operating income (%)

The concept of CVP i.e. cost-volume-profit analysis will have to be used here. We will first need to…

Answered: Margin of Safety (in $)…

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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please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)

Exhibit 1: Assumptions (Both Products)
Product #1:	Launch-it
Sales price per unit	$ 10.00
Variable costs per unit:	$ 4.00
Monthly volume	240

Product #2:	Treat-time
Sales price per unit	$ 30.00
Variable costs per unit:	$ 14.00
Monthly volume	160

Total fixed costs per month	$ 1,500.00

Target profit per month	$ 8,000.00

Margin of Safety (in $)

Margin of Safety %

Degree of Operating Leverage

Expected % change in operating income (%)

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