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# EBook Calculator Margin of Safety and Operating Leverage Medina Company produces a single product. The projected...

## Question

###### EBook Calculator Margin of Safety and Operating Leverage Medina Company produces a single product. The projected...

eBook Calculator Margin of Safety and Operating Leverage Medina Company produces a single product. The projected income statement for the coming year is as follows: Sales (60,000 units @ \$21.00) \$1,260,000 Total variable cost 478,800 Contribution margin \$ 781,200 Total fixed cost 755,160 Operating income \$ 26,040 Required: 1. Compute the break-even sales dollars. 2. Compute the margin of safety in sales dollars 3. Compute the degree of operating leverage! 4. Compute the new operating income if sales are 20% higher than expected.

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