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Janets's Custom Golf Sells Special Clubs

Question 31

Essay

Janets's Custom Golf sells special clubs.Janet is able to purchase equipment from a manufacturing company for $90 each.The equipment is sold for $170 each.Required:
a.What is the break-even in units assuming Janet incurred $4,500 in selling expenses, and there were no other expenses?
b.What would be the break-even in units assuming Janet incurred $4,500 in selling expenses and had $9,000 in other fixed expenses?

Correct Answer:

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a.Contribution margin = $170 -...

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