Problem

Firebird Mfg. Co. has a contribution margin ratio of 45 percent and must sell 25,000 units...

Firebird Mfg. Co. has a contribution margin ratio of 45 percent and must sell 25,000 units at a price of $80 each in order to break even.

a.    Compute total fixed costs.


b.   Compute variable cost per unit.


c.    Develop the company’s cost formula.

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