Renzen Company manufactures pocket-sized digital dictionaries. Variable costs are $30 per dictionary, the price is $45, and
Question:
Renzen Company manufactures pocket-sized digital dictionaries. Variable costs are $30 per dictionary, the price is $45, and fixed costs are $90,000.
Required:
1. What is the contribution margin for one dictionary?
2. How many dictionaries must Renzen Company sell to break even?
3. If Renzen Company sells 6,300 dictionaries, what is the operating income?
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