Moruzzi corporation is a single-product company that, Accounting Basics

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Moruzzi corporation is a single-product company that

Problem

Moruzzi Corporation is a single-product company that expects the following operating results for next year:

Sales.......................................................... $320,000
Contribution margin per unit.................... $0.20
Contribution margin ratio......................... 25%
Degree of operating leverage.................... 8

How many units would Moruzzi have to sell next year to break-even?

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Accounting Basics: Moruzzi corporation is a single-product company that

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