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Brightray Inc

Question 125

Essay

Brightray Inc. ,sells lamps for $30.The unit variable cost per lamp is $22.Fixed costs total $9600.
Required:
a.What is the contribution margin per lamp?
b.What is the break-even point in lamps?
c.How many lamps must be sold to earn a pre-tax profit of $10 000?
d.What is the margin of safety,assuming 1500 lamps are sold?
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Correct Answer:

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a.Contribution margin per lamp = $30 - $...

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