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Question
Bing Company's contribution margin income statement is presented below. Sales for the current period consisted of 7,500 units. Compute the company's break-even point in (a) units, and (b) dollars. Compute the margin of safety in (c) dollars and (d) percent.| Bing Company Contribution Margin Income Statement | |
| Sales | $225,000 |
| Variable costs | 135,000 |
| Contribution margin | 90,000 |
| Fixed costs | 48,000 |
| Net income | $42,000 |
Answer
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