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Jefferson Company Produces Only Product A Required:
A

Question 181

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Jefferson Company produces only product A. The following information is available:  Selling price per unit $95 Variable costs per $70 unit  Total fixed costs $130,000\begin{array}{ll}\text { Selling price per unit } & \$ 95 \\\text { Variable costs per } & \$ 70 \\\text { unit } & \\\text { Total fixed costs } & \$ 130,000\end{array} Required:
a. Compute break- even point in units.
b. Compute break- even volume in dollars.
c. Compute the margin of safety assuming planned unit sales of 6,000.

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a. $130,000 / ($95 - $70) = 5,...

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