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Phillip Company: break-even

For the current year ending April 30, Phillip Company expects fixed costs of $70,000, a unit variable cost of $60, and a unit selling price of $95.

(a) Compute the anticipated break-even sales (units).

(b) Compute the sales (units) required to realize an operating profit of $8,000.

Solution Preview

Fixed cost = 70000
Variable cost = 60
Selling price = 95

Contribution margin = Selling price - variable ...

Solution Summary

This solution contains calculation of the break-even point, contribution margin, and operating profit.