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Gladstorm Enterprises sells a product for $55 per unit. The variable cost is $35 per unit, while fixed costs are $19,440. Det

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Answer #1

a.Contribution margin=Sales-Variable cost

=(55-35)=$20 per unit

Breakeven=Fixed expenses/Contribution margin

=19440/20

=972 units

b.Contribution margin=Sales-Variable cost

=(71-35)=$36 per unit

Breakeven=Fixed expenses/Contribution margin

=19440/36

=540 units

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