CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and...
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CVP and Sensitivity Analysis (Single Product). Victoria, Inc., has annual fixed costs totaling $240,000 and variable costs of $6 per unit. Each unit of product is sold for $30. Victoria expects to sell 12,000 units this year (this is the base case). Required: Find the break-even point in units. How many units must be sold to earn an annual profit of $100,000? (Round to the nearest unit.) Find the break-even point in sales dollars. What amount of sales dollars is required to earn an annual profit of $140,000? Find the margin of safety in units and in sales dollars.
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