Variable cost
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If a company sells a product at $60.00 per unit that has unit variable costs of $40.00 The co break-even sales volume is $120,000 How much profit will the company make if it sells 4,000 units? Please explain.
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Solution Summary
Solution describes how to calculate profit at given sales level when break-even sales , selling price and variable cost per unit are given.
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Contribution per unit = selling price per unit - variable cost per unit =$60-$40 =$20
Contribution margin ratio = Contribution per unit ...
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