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Break-Even Sales Currently, the unit selling price of a product is $380, the unit variable cost is $310, and the total fixed

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Answer #1

a.Contribution margin=Sales-Variable cost

=(380-310)=$70 per unit

Breakeven =Fixed cost/Contribution margin

=1,155,000/70

=16500 units

b.

Contribution margin=Sales-Variable cost

=(420-310)=$110 per unit

Breakeven =Fixed cost/Contribution margin

=1,155,000/110

=10500 units

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