Problem

The following is information concerning a product manufactured by Ames Brothers: Sales p...

The following is information concerning a product manufactured by Ames Brothers:

Sales price per unit

$ 70

Variable cost per unit

43

Total fixed manufacturing and operating costs (per month)

405,000

Determine the following:

a.    The unit contribution margin.


b.   The number of units that must be sold each month to break even.


c. The unit sales level that must be reached to earn ail operating income of $270,000 per month.

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