Riley Company produces and sells a product that has variable product costs...
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Accounting
Riley Company produces and sells a product that has variable product costs of $ per unit and a selling price of $ per unit. Its current sales total $ per month. Fixed manufacturing costs total
$ per month and fixed selling and administrative costs total $ per month. Variable selling and administrative costs are $ per unit. The company is considering a proposal that will increase the
selling price by increase the fixed manufacturing costs by and increase the fixed selling and administrative costs by $
Required:
Compute the company's current breakeven point in units.
Compute the company's current margin of safety in dollars.
Compute the breakeven point in units assuming the proposal is accepted.
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