contribution margin,Break evenpoint
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The snowboard sells for $180.
a) What is the unit contribution margin per snowboard?
b) What is the breakeven point in units?
c) Explain what the contribution margin is, and why it is useful information for Elizabeth.
Please refer to attachment.
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Solution Summary
The solution contains the calculation of contribution margin, break even point and the importance of contribution margin
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a) What is the unit contribution margin per snowboard?
Contribution margin per unit=selling price per unit-variable cost per unit
Contribution per snowboard 125
b) What is the breakeven ...
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