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The following data relates to a company with a single product: . Selling price per unit: $150 Variable selling costs per unit
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Answer #1

Ans : (a) 32000 units

Break even points (Units) = Fixed Cost/ Contribution Margin

As per the question:

Fixed Cost = 1,200,000 + 400,000 = $1,600,000

Contribution Margin = Selling Price - Variable Cost

=150 - 10 - 90 = $50

Therefore,

BEP(units) = 1,,600,000/ 50 = 32000 units

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