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A Company Manufactures a Product and Sells It for $120

Question 203

Essay

A company manufactures a product and sells it for $120 per unit. The total fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are expected to be $75 per unit. What is the company's break-even point in (a) units and (b) dollar sales?

Correct Answer:

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Contribution margin = $120 - $...

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