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b.) Units that must be sold to break even. c.) Units that must be sold to earn an operating income of $500,000.

5.) Complete Dillon Corp.’s flexible budget for 75,000 units using the information listed below: 25,000 Units

50,000 Units

Sales

$375,000

$750,000

Cost of Goods Sold

$250,000

$500,000

Gross Profit on Sales

$125,000

$250,000

Operating expenses ($10,000 of it is fixed)

$35,000

$60,000

Operating Income

$90,000

$190,000

Income Taxes (30% of operating income)

$27,000

$57,000

Net Income

$63,000

$133,000

75,000 Units

Assume that cost of goods sold and any variable operating expenses vary directly with sales and that income taxes remain constant at 30%. 6.) Del Sol Healthcare is considering two capital investment proposals. The information for both projects is listed below:

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