At 50,000 units, a company loses $45,000. If it produced 10,000 additional units, it would do $13,000

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At 50,000 units, a company loses $45,000. If it produced 10,000 additional units, it would do $13,000 better. Assuming the firm’s costs are either variable or fixed (i.e., no semifixed costs):

a. What is the contribution margin per unit?

b. What is the level of fixed costs?

c. What is the break-even point in units?

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Practical Finance For Operations And Supply Chain Management

ISBN: 9780262043595

1st Edition

Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice

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Question Posted: Apr 28, 2024 03:01 AM

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At 50,000 units, a company loses $45,000. If it produced 10,000 additional units, it would do $13,000

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To calculate the contribution margin per unit level of fixed costs and breakeven point in units we c...View the full answer

Practical Finance For Operations And Supply Chain Management

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