Homework Answers
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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