Contribution margin and Break even point
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Perrson Company makes two types of backpacks. Data for the company's activity during a typical month are presented below:
School Hiker
Model Model
Sales units 40,000 40,000
Selling price per unit $6 $18
Variable expense per unit $2 $10
The company's total fixed expenses are $80,000. There are no beginning or ending inventories.
Required:
a. What is the per unit contribution margin for each of the two models?
b. What is the break-even point in terms of sales dollars if the sales mix remains constant?
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This solution provides all of the steps to compute the contribution margin and break even point
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Perrson Company makes two types of backpacks. Data for the company's activity during a typical month are presented below:
Required:
a. What is the per unit contribution margin for each of ...
Purchase this Solution
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