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Campbell Company incurs annual fixed costs of $110.055. Variable costs for Campbells product are $22.05 per unit, and the sa
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Answer #1
Calculation of sale in dollars & sale volume
Contribution margin = sale-variable cost
contribution margin = 35 p.u -22.05 p.u = 12.95 p.u
contribution ratio = 12.95/35 = 37%
sale = fixed cost+desired profit/contribution ratio
sale = (110055+57000)/0.37
sale = 451500
sale volume in units = (fixed cost+desired profit)/contribution p.u
sale volume in units = (110055+57000)/12.95
sale volume in units = 12900

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