Homework Answers
a.
Break even sales unit = Fixed cost / Contribution margin per unit
Contribution margin per unit = Sales price - variable cost per unit
= $81 - $47
= $34.
Break even sale unit = $184960 / $34
= 5440 units.
b.
Break even sales when selling price is $87.
Contribution margin per unit = $87 - $47 = $40
Break even sales = $184960 / $40
= 4624 units.
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