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Arthur Company had the following data for the year just ended: Sales Sales price Variable cost Fixed costs 4,000 units $60 pe

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Answer #1
Contribution margin ratio = ( Sales price - Variable cost ) / Sales price = ( 60 - 18 ) / 60 70%
Break-even sales = Fixed costs / Contribution margin = 42000 / 70% 60000
Units needed to sell = ( Break-even sales + Margin of safety ) / Sales price = ( 60000 + 35000 ) / 60    1583 units
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