During Muin Company's first year of operations it sold a single product for $25 per unit, with variable costs of $15 per unit. Annual fixed costs were $60,000 (with Fixed Manufacturing Overhead making up 50% of the total and Fixed Selling and Admin making up the other 50%).
a)Assuming fixed costs are spread evenly throughout the year, what was Muin's monthly breakeven point in units?
b)Muin sold 500 units per month. What was its monthly gross margin? What was its annual gross margin? What was its operating profit?
b)What was its monthly contribution margin? What was its annual contribution margin? What was its operating profit?
c)Based on the same sales data as in
d)Explain the difference between Muin Co's annual gross margin and its annual contribution margin during its first year of operations.

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The Answer of During Muin Company's first year of operations it sold a single product for $25 per unit, with variable costs of $15 per unit. Annual fixed costs were $60,000 (with Fixed Manufacturing Overhead making up 50% of the total and Fixed Selling and Admin making up the other 50%).
a)Assuming fixed costs are spread evenly throughout the year, what was Muin's monthly breakeven point in units?
b)Muin sold 500 units per month. What was its monthly gross margin? What was its annual gross margin? What was its operating profit?
b)What was its monthly contribution margin? What was its annual contribution margin? What was its operating profit?
c)Based on the same sales data as in
d)Explain the difference between Muin Co's annual gross margin and its annual contribution margin during its first year of operations.

During Muin Company's First Year of Operations It Sold a Single