Contribution margin=Sales-Variable costs
=25-12=$13 per unit
Contribution margin ratio=Contribution margin/Sales
=13/25
=0.52
Hence breakeven sale=Fixed cost/Contribution margin ratio
=130,000/0.52
=$250,000.
2 Sarafine, Inc. sells a single product for $25. Variable costs are $12 per unit and fixed costs total $130,000 at a vo...
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