Answer
a |
Break even in units |
17,500 |
=875000/(80-30) |
Break even point in dollars |
$1,400,000 |
=17500*80 |
|
b |
Contribution margin per unit |
$50 |
=80-30 |
Break even in units |
17,500 |
=875000/50 |
|
Break even point in dollars |
$1,400,000 |
=17500*80 |
|
c |
CM Ratio |
62.5% |
=50/80 |
Break even in units |
17,500 |
=+(875000/62.5%)/80 |
|
Break even point in dollars |
$1,400,000 |
=875000/62.5% |
6 Reid Company is considering the production of a new product. The expected variable cost is...
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